Mkango completes 12.5-million-British-pound fundraise

Executive Summary

• Mkango Resources Ltd. successfully completed an upsized fundraise, increasing gross proceeds from £10 million to £12.5 million (approx. $23 million) due to strong investor demand.
• The financing involved the issuance of 37,878,788 new common shares at a price of 33 pence per share, split across placing, LIFE, retail, and subscription components.
• Net proceeds are designated for working capital, capital expenditures for UK and German operations (including feasibility studies), and a potential acquisition in Germany.

Key Details

• Total Gross Proceeds: £12.5 million (approximately $23 million USD).
• Share Price: 33 pence per common share (approx. 60.6375 cents USD).
• Total Shares Issued: 37,878,788 new common shares.
• Dilution: The new shares represent approximately 10.8% of the issued share capital prior to the fundraise.
• Breakdown of Proceeds:
  • Placing: 30,909,154 shares raising ~£10.2 million ($18.7 million).
  • LIFE Offering: 636,300 shares raising ~£200,000 ($400,000).
  • Retail Offer: 3,030,303 shares raising ~£1.0 million ($1.8 million).
  • Subscription: 3,303,031 shares raising ~£1.1 million ($2.0 million).
• Use of Proceeds:
  • Support growth opportunities, including a potential acquisition in Germany.
  • Capital expenditure requirements at UK and German operations, including required feasibility studies for plant expansions.
  • Working capital.
• Advisers:
  • Joint Bookrunners: Peel Hunt LLP, H&P Advisory Ltd., and Alternative Resource Capital (Shard Capital Partners LLP).
  • Canadian Adviser: Red Cloud Securities Inc.
  • Corporate Finance Adviser: JUB Capital Management LLP.
• Listing and Trading:
  • Applications for admission to AIM and conditional acceptance by TSX Venture Exchange.
  • Expected admission to AIM and commencement of trading on TSX-V: April 10, 2026.
  • Settlement expected on April 10, 2026, on a T+5 basis.
• Hold Periods:
  • LIFE offering shares: No hold period under Canadian securities legislation.
  • Placing, subscription, and RetailBook offer shares: Subject to a 4-month and 1-day hold period in Canada.
• Related Party Transaction:
  • Interim CFO Tim Slater participated in the Retail offer with £150,000 ($275,625).
  • The company relied on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101 and TSX-V Policy 5.9.
• Post-Financing Share Capital:
  • Total issued and outstanding shares immediately following admission: 387,110,284 shares.
• Exchange Rate: Calculations based on £1 = $1.8375 USD.

Notable Quotes

• William Dawes, Chief Executive Officer: "Following strong demand from both new institutional and existing investors, we are pleased to have completed this successful, upsized fundraise. The support we have received is a clear endorsement of Mkango's strategy and the long-term opportunity across our businesses, which span the whole rare earths supply chain. Importantly, this financing strengthens our balance sheet and provides us with flexibility to advance our near-term priorities, including growth initiatives in the U.K., Germany and beyond. We are very conscious of the challenging market conditions; however, this result demonstrates the resilience of our business and the confidence investors continue to place in Mkango."