Mkango Resources (LSE:MKA) has completed an oversubscribed equity fundraising, increasing the size of the raise from £10 million to £12.5 million. The company issued approximately 37.9 million new shares at a price of 33 pence each, representing around 10.8% of its share capital prior to the transaction. The fundraising involved a combination of a placing, LIFE offering, retail offer and subscription, attracting participation from both existing and new investors. Admission of the new shares to trading on AIM and the TSX Venture Exchange is expected on 10 April, subject to regulatory approval.
The proceeds will be used to support a potential acquisition of a complementary magnet business in Germany, as well as to fund capital expenditure at Mkango’s operations in the UK and Germany and provide additional working capital. Management said the strong investor demand reflects confidence in the company’s strategy to establish an integrated rare earths supply chain, even amid challenging market conditions. The announcement also noted insider participation in the retail offering, which has been treated as a related party transaction under Canadian securities regulations.
More about Mkango Resources
Mkango Resources is a rare earths company listed on AIM and the TSX Venture Exchange, focused on developing an integrated supply chain for rare earth materials. The group is expanding its magnet manufacturing and processing activities in the UK and Germany, targeting growing demand for critical materials used in green technologies and advanced manufacturing.
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