- Mkango Resources (MKA) and CoTec Holdings Corp. (CTH) have signed definitive agreements
- The agreements relate to a £2 million convertible loan agreement in Mkango and a £1.5 million equity investment in Maginito
- Also involved is a co-operation agreement regarding future investments in rare-earth processing technology opportunities in the United States
- CoTec Holdings Corp. is an ESG-focused company investing in innovative technologies
- Mkango Resources Ltd is engaged in the exploration of rare earth elements and associated minerals in the Republic of Malawi
- Mkango Resources Ltd. was up 18.966 per cent, trading at C$0.345 at 1:38 PM ET
Mkango Resources (MKA) and CoTec Holdings Corp. (CTH) have signed definitive agreements.
The agreements relate to a £2 million convertible loan agreement in Mkango, a £1.5 million equity investment in Maginito, and subject to closing, a co-operation agreement regarding future investments in rare earth processing technology opportunities in the United States.
In connection with the £1,500,000 Maginito investment, CoTec has agreed to subscribe for shares in Maginito, equivalent to a post-issuance 10 per cent equity stake, for an investment of £1.5 million (C$2,466,900) with a closing date not later than 15th March, 2023.
On the Maginito investment closing, CoTec and Mkango will enter into a shareholders agreement with respect to Maginito which will grant CoTec the right to one Maginito board seat for so long as CoTec continues to hold at least a five percent shareholding in Maginito.
Furthermore, on the Maginito investment closing, Mkango and Maginito will sign a management agreement whereby Mkango will continue to manage Maginito.
Regarding the £2,000,000 convertible loan, CoTec has agreed to invest by no later than February 3, 2023 an additional £452,500 (C$744,181) for an aggregate investment of £2,000,000 (C$3,289,200) by way of a convertible loan to Mkango, bearing 5 per cent interest, compounded annually.
The convertible loan is secured over the shares held by Mkango in Maginito and the terms supersede all previous convertible notes issued by Mkango to CoTec.
The convertible loan is convertible (both principal and interest) by CoTec at any time prior to the maturity date of the convertible loan.
Subject to Maginito Investment Closing, Maginito and CoTec will sign a co-operation agreement regarding future investments in rare earth processing technology opportunities in the United States.
Maginito is focused on developing green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet, and separation technologies.
CoTec Holdings Corp. is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed.
Mkango Resources Ltd. is a Canadian company engaged in the exploration of rare-earth elements and associated minerals in the Republic of Malawi.
Mkango Resources Ltd. was up 18.966 per cent, trading at C$0.345 at 1:38 PM ET.
