AMN - MALAWI: Noble to acquire 12.5% of Mkango

Mkango Resources has entered into a collaboration agreement with Noble Resources International, which will also allow Noble to acquire up to a 12.5% interest in Mkango. Noble is one of world's largest commodity traders and the largest in Asia, with a presence throughout the region. It is listed on the Singapore Stock Exchange with a market capitalisation of approximately $1.5 billion.

Under the key terms of the agreement, Noble will provide the following services to Mkango:

• Identifying the optimal markets and counterparties for Mkango's future rare earths production from the Songwe Hill rare earths project in Malawi, during the BFS and in advance of mine development

• Identifying the best strategy for the project's product mix given the international market for different rare earths concentrates and separated rare earths oxides, and advising Mkango on the way forward

• Identifying the optimal logistics route to take the project's production to market

• Introductions to potential strategic partners to finance development of the project

• Assistance in market-related discussions with key stakeholders, including Mkango's financial, technical and legal advisers, prospective investors and lenders and relevant government agencies associated with the project.

Noble will also have the right to negotiate a marketing services agreement for rare earths produced by the project.

Mkango CEO Will Dawes says: "This is a company transforming transaction and we are delighted to be working with Noble, the largest commodity trader in Asia, seeing this as a key stepping stone to moving the project through the development phase. Mkango is focused on one of the few advanced stage rare earths projects outside China, and through Noble's network and relationships in Asia and elsewhere, its marketing expertise, logistics platform and offtake capabilities, we are very well positioned to advance the project against the backdrop of a recovering rare earths sector.

“We are also very pleased to welcome two specialist institutional funds, the Rare Earth Elements Fund and Metals Exploration Fund, as major new investors in the company, in addition to continued support from existing shareholders."

www.mkango.ca

News courtesy of International Mining