Mkango raises £1.25m to expand magnet recycling operations

5th Sep 2024 11:38

(Sharecast News) - Mkango Resources announced on Thursday that it has completed a private placement, raising £1.25m to support its efforts to expand its rare earth magnet recycling operations in the UK and Germany.

The AIM-traded firm said it raised the funds through the issue of 25 million shares at 5p each.

Each of the 25 million shares issued came with a warrant, allowing the holder to purchase one additional share at 7p apiece for the next three years, expiring in September 2027.

Additionally, Mkango issued 1.25 million broker warrants to Jub Capital Management, exercisable at 5p per share for a three-year period.

All shares and warrants would be subject to a statutory hold period in Canada, expiring on 5 January 2025.

After fees, the net proceeds of £1.19m will be used primarily to acquire equipment for HyProMag UK and HyProMag Germany, supporting the commercial development of rare earth magnet recycling facilities at Tyseley Energy Park in Birmingham and in Pforzheim, Germany, as well as for general working capital.

The 25 million new shares started trading on AIM on Thursday and would be listed on the TSX-V, contributing to Mkango's total outstanding share capital of 293,453,574 shares.

At 1058 BST, shares in Mkango Resources were down 3.46% at 6.28p.

Reporting by Josh White for Sharecast.com.