AMN - MALAWI: Mkango granted prospecting licence

Mkango Resources has been granted a new Exclusive Prospecting Licence in Mchinji district of central Malawi. The Mchinji licence covers 868.69sqkm and is adjacent to licences with known mineral potential including the company’s Chimimbe Hill nickel-cobalt licence to the south.

Mkango will evaluate all historical data over the licence area for exploration targets in the context of geophysical data produced by a countrywide airborne survey completed by the World Bank in 2016. Exploration will focus on nickel-cobalt, gold, base metals and graphite.

The evaluation of the licence will be funded from the company’s existing working capital.

Mkango's president Alexander Lemon said: "We are delighted to have been granted the Mchinji exploration licence, which strengthens the company’s strategic licence position in Malawi.

"We are commencing a full historical data review to identify exploration targets, and look forward to updating shareholders on this new licence in due course."

The licence is initially awarded for a three-year term, after which it can be renewed twice for further two-year periods with a 50% reduction in the licence size required with each renewal.

A feasibility study for the flagship Songwe Hill Rare Earths project continues in parallel, fully funded by strategic partner, Talaxis Limited, a subsidiary of Noble Group.

The company also plans to begin exploration on its 100%-owned Thambani licence after a Non-Binding Heads of Terms Agreement with MetalNRG plc was terminated. This agreement set out the terms for the two parties to enter into an earn-in agreement for the project.

Following the inflow of £1.1 million from a recent warrant exercise, Mkango will begin a further exploration program at Thambani in 2019, thereby retaining 100% of the exploration exclusive prospecting licence, which features multiple zones of high-grade uranium, tantalum and niobium, with a number of extensive uranium radiometric anomalies.

In parallel, Mkango will continue to evaluate partnership opportunities for the project.

www.mkango.ca