Mkango enters collaboration agreement with Noble Resources

Mkango Resources Ltd's shares are up almost 4% after it entered a collaboration agreement with Noble Resources International.

The agreement will also allow Singapore-listed Noble -- one of the world's largest commodity traders -- to acquire up to a 12.5% interest in AIM-quoted Mkango via the exercise of warrants.

Mkango would, subject to regulatory approval, issue 12m common share purchase warrants to Noble, aligning Noble's interests with those of Mkango's shareholders.

Each whole warrant would entitle Noble to acquire one common share of Mkango at a price of 6.6p each for a period of two years following the date of the agreement.

"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," said chief executive Will Dawes.

"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 off-take capabilities, we are very well positioned to advance the project against the backdrop of a recovering rare earths sector," he said.

"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."

At about 13:59 GMT, shares in Mkango were up 3.85% to 3.38p.