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Mkango Resources Ltd (2)
Symbol MKA
Shares Issued 268,453,574
Close 2024-05-09 C$ 0.115
Market Cap C$ 30,872,161
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Mkango Resources reduces executive salaries

2024-05-10 11:12 ET - News Release

Mr. William Dawes reports

MKANGO RESOURCES LIMITED ANNOUNCES MANAGEMENT RESTRUCTURES COMPENSATION

As part of Mkango Resources Ltd.'s cost-cutting initiatives and complementary to its recent 750,000-pound-sterling private placement closing, announced on April 11, executive management salaries have been reduced by between 25 per cent to 50 per cent each from April, 2024, through to September, 2024. This conserves additional working capital to advance the Company's assets. In connection with these salary reductions, the board has implemented a bonus scheme in the form of shares to incentivise the executive management team. The non-executive directors (including the Non-Executive Chairman) have foregone their remuneration since 1 January 2024.

The Company has also issued 4,037,024 Restricted Share Units ("RSUs") pursuant to the Company's RSU plan as adopted on 25 October 2023, ("RSU Plan"), to William Dawes (1,513,884 RSUs), Alexander Lemon (1,513,884 RSUs) and Robert Sewell (1,009,256 RSUs). Each RSU is exchangeable, on vesting, for one common share of the Company. Included in these RSUs are 1,250,000 RSUs allocated upon the surrender of 1,250,000 options, previously granted on 30 August 2021 and 30 May 2023, to the Company's Chairman, Derek Linfield, to provide further incentives to management and in appreciation of the salary reductions referred to above.

In addition to the normal vesting condition contained in the RSU Plan, the RSUs issued to William Dawes and Alexander Lemon will not vest until first commercial sales of recycled NdFeB at Tyseley Energy Park are achieved. Following the surrender of options and the grant of RSUs, the total number of ordinary shares under option is 26,845,357, representing 10 per cent of the Company's total issued share capital.

William Dawes, Chief Executive of Mkango stated: ''With development of the recycling operations gathering momentum globally, including the recent USA feasibility study commencement, placement of equipment orders for Germany, the UK chemical recycling pilot plant commissioning nearing completion and HyProMag's targeted first commercial sales of recycled NdFeB at Tyseley Energy Park later this year, Mkango's executive management team are happy to be incentivized for a significant portion of our compensation. We firmly believe in the long-term robust economics and growth potential offered through our investment in HyProMag and the complementary recycling routes being developed by Mkango Rare Earths UK. This arrangement comes in addition to the recent pounds sterling150,000 I subscribed for personally in the last private placement.''

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited ("Maginito"), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.

Maginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth magnet recycling in the UK via a chemical route.

Maginito and CoTec are also rolling out HyProMag's recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company.

Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland. Discussions with the Government of Malawi in relation to the Mining Development Agreement for Songwe Hill are ongoing.

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