06:44 AM EDT, 03/25/2024 (MT Newswires) -- Mkango Resources Ltd. ( MKNGF ) was at last look down near 10% in UK trade after it earlier on Monday announced that it has conditionally raised gross proceeds of 750,000 pounds (near C$1.3 million) through the issuance, on a private placement basis, of 15 million common shares of the company at a price per subscription share of five pence (near C$0.086).

William Dawes, Chief Executive of Mkango in a statement said: "Mkango sounded out the market in January of this year with a view to considering a fund raising to pursue all of Mkango's existing business lines. Given the share price decline during this period, the company has decided to minimise shareholder dilution at the current share price by raising a relatively small amount of money from existing shareholders and myself in order to enable the company to achieve key milestones for HyProMag. In addition, to ensure enough financial runway to achieve these goals, the company has implemented a cost cutting exercise which will materially reduce the company's monthly cash burn.

"As part of this process, the company has decided to launch a review of strategic options for its Songwe Hill Rare Earths Project in Malawi as well as the Pulawy Rare Earths Separation Project in Poland. Mkango believes this strategic review will help maximise returns for its shareholders whilst it seeks to expand its recycling business."

Mkango's statement noted HyProMag is commercialising Hydrogen Processing of Magnet Scrap recycling technology in the UK, Germany and United States.