Mkango Resources regains 100% ownership of Songwe Hill rare earths project

Mineral exploration and development company Mkango Resources said on Thursday that it has entered into agreements to acquire Noble Group subsidiary Talaxis' 49% interest in Lancaster Exploration and a 24.5% stake in Maginito.

Mkango stated the addition of Lancaster would return 100% ownership of the Songwe Hill Rare Earths Project in Malawi to the firm, while snapping up Maginito grants it a 25% interest in rare earths magnet recycler HyProMag.

In order to satisfy the acquisition, the AIM-listed firm will hand over 54.16m shares to Talaxis, equivalent to £13.0m.

Mkango has also conditionally raised £5.52m from new and existing shareholders at a price of 24.0p per share.

Chairman Derek Linfield said: "This transaction brings material benefits to both Mkango and Talaxis and strengthens Mkango's position as a future integrated supplier of rare earths.

"We believe this transaction delivers a better platform to create value and a structure more aligned with the strategies of both companies."

As of 1100 BST, Mkango shares had shot up 12.0% to 28.0p.