Mkango to Raise £10m to Accelerate Rare Earth Magnet Expansion

An update from Mkango Resources ( (TSE:MKA) ) is now available.

Mkango Resources plans to raise about £10 million through a multi-track equity offering, including an institutional placing, a Canadian private placement under the Listed Issuer Financing Exemption, a UK retail offer and a direct subscription by certain overseas investors. The proceeds will fund a potential acquisition of a synergistic German magnet business, capital expenditure at its UK and German plants, feasibility studies for plant expansions and working capital, bolstering its balance sheet and accelerating its rare earth magnet recycling strategy to capitalise on rising demand for secure, sustainable magnet supply.

The fundraise, priced at 33 pence per new common share, is not underwritten and will be executed via an accelerated bookbuild with Peel Hunt, H&P and Alternative Resource Capital as joint bookrunners, while Red Cloud acts as Canadian adviser. Trading in Mkango’s shares on the TSX-V was temporarily halted pending the announcement, and the financing is positioned by management as a key step in scaling magnet manufacturing across Europe, strengthening the company’s competitive position in a strategically important segment of the energy transition supply chain.

More about Mkango Resources

Mkango Resources is a dual-listed company on AIM and the TSX Venture Exchange focused on rare earth magnet production and recycling, with operations in the UK and Germany. The company targets growing demand for sustainable and secure supplies of rare earth magnets used in data centres, electric vehicles and renewable energy applications.

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