Mkango Resources Share Discussion Threads

[keya5000] 19/12/2016 07:25

Comments on today's RNS?

[sweet karolina] 29/11/2016 18:05

Looks like they will run out of money some time after Easter. Placing around March time would be my guess.

[sweet karolina] 25/11/2016 10:14

Bit slow off the mark Dan, already posted on 22 Nov. No wonder you were caught robbing banks if that is how quickly you move.

No surprise that the video edited the questions though. It would have been good to watch them squirm and would have exposed the lies told about you running away.

[daniel levi bmd] 25/11/2016 09:59

FYI



Oxfam blow up Mkango Resources.


Dan
x

[sweet karolina] 22/11/2016 15:13

Has enough drilling been done already?

From Songwe PFS:

"A total of 38 inclined and vertical diamond drill holes totaling 6,852.28 m have been drilled"



"The 2014 Resource Estimate incorporates a dataset of 19,130 assays a total of 21,037m of drilling over 323 drill holes."

About half of frontier's resource is in the measured category, none of MKA's is in that category.

About a third of frontier's reserves are in the proven category none of MKA's are in the proven category

[stan40] 22/11/2016 09:58

is there a copy of video out yet anywhere

[sweet karolina] 22/11/2016 09:15

The conditions under which the directors get paid include if they manage to raise more money eg though a placing.

The company has a tiny amount of money to see it through 18 months, which is not enough to actually pay directors and not enough to do any work of the project. It will cover Nomad, Broker, PR fees, office rental, Mining Maven ramping events and travel to go an talk to anyone who will listen to a pitch about doing some form of JV. The renewal of the licence may well have brought minimum expenditure conditions which bust the tiny budget. Try asking Will why the extant licence end dates were not included in the admission document and what the conditions on the extended licence are.

In this case directors remuneration is not particularly excessive, unlike a load of AIM lifestyle companies. The company has gone from year to year with an emphasis of matter regarding going concern included in each annual report. They are therefore quire expert at living on a shoestring and diluting shareholders on a regular basis to keep the show on the road. Fundamentally the problem is they started out without the money needed to get the project to the PFS stage. In a number of ways you have to admire the directors for getting this far, they have worked very hard for very little reward, but have lost investors a lot of money in the process.

Ultimately this extract from the admission document speaks volumes:

"At present, only one other mining company in Malawi has secured a full Mining Licence from the Malawian Government and thereby brought a mine into the full production stage."

The Chinese are primarily interested in securing the raw materials China needs. As China is the major exporter of REE this motivation is not there. The Chinese are a nightmare to deal with as there are a whole load of government approvals needed before any money appears. So many of the resource companies I have looked at that have been involved with "the Chinese" have come to grief one way or another.

Having talks and meetings mean nothing, one hopes they are having talks and meetings all the time, though after over 2 years of having talks and meetings it must be getting harder to find people they have not already spoken to who have the deep pockets needed and might be interested in chancing their arm in Malawi. If the talks and meeting were to move to a formally announced due diligence phase and that was with the Chinese, the best thing to do would be to sell on the share price spike. But do not hold your breath for that announcement.

[tidy 2] 22/11/2016 08:41

None of the bod take a wage plus Will confirmed they have cash by email On 18 Sep 2016, at 15:46, Will Dawes wrote:Dear Xxxx, Thank you for your email. I can assure you that the company is not insolvent. Below is a link to our most recent quarterly report. The MD&A is also on the website. http://www.mkango.ca/i/pdf/fs/Mkango-Jun-30-2016-Financial-Statements-FINAL-WD.pdf Please refer to section 2, Going Concern. As at end of June, working capital surplus of US$559,440. This is calculated as current assets minus current liabilities. Current liabilities are detailed in section 6. Also, as stated in the quarterly: "At the time of its AIM listing, the Company raised gross proceeds of £1 million. The Company forecast that the net proceeds of the fund raising, totalling £545,000, would fund the working capital requirements of the Company for the next 18 months.As at the current date, the Company's expenditures remain within budget." Long term liabilities are not included in the working capital calculation in accordance with normal accounting practice. Long term liabilities comprise warrants (which are non-cash) and unpaid deferred salaries for Alex Lemon and me. The circumstances under which these would ever be paid are included in section 7, hence part of long term liabilities. Alex and I are co-founders of the company, largely incentivised via equity, and so it is strongly in our interest to make it a success. As a Canadian company, the next set of quarterlies for the quarter ending September 2016, will be released by the end of November. Kind regards Will Will DawesChief Executive Mkango Resources Limited706 27 Avenue NW,Calgary, Alberta T2M 2J3Canadawww.mkango.ca Tel : [phone]Mobile : [phone]Email: [e-mail]

[d6529] 22/11/2016 06:50

This is looking like a pump job now.

I think a placing in on the cards, all the ingredients are there, promotional presentation followed by people spamming twitter posts and tring to make out they are doing business with the Chinese.

caveat emptor!!!!!

[tidy 2] 22/11/2016 00:58

#MKA delighted to meet delegation from Zhuzhou High-tech Industrial Development Zone on Friday #China #EV #WindTurbines #MagLev #RareEarthshttps://twitter.com/mkangoresources/status/800650402882469888

[andy] 21/11/2016 21:12

ah so they're "talking to the Chinese"

A bit different to a "deal" then!

I spoke to a Swiss businessman tonight, so I'm "in talks with the Swiss"

[sweet karolina] 21/11/2016 20:44

They have been talking to anyone who will listen for over 2 years now. All smells a lot like a ramp before a placing.

[tidy 2] 21/11/2016 20:24

Taking to Chinese check their twitter link. Can't believe you didn't know.

[andy] 21/11/2016 17:15

tidy,

Share Talk and twitter are not official market channels of communication.

If the company are saying that on Twitter I think they will be in serious trouble if not already announced to the market.

Where is the RNS re the Chinese "deal"?

[sweet karolina] 21/11/2016 16:51

Ramp ahead of a placing

[tidy 2] 21/11/2016 16:15

PLUS mkango tweets Andy.

[andy] 21/11/2016 15:33

tidy,

You can only state that if you're an insider, so are you an insider?

And if so are you aware of the market rules re disclosure?

[tidy 2] 21/11/2016 14:45

This is the build up to material news take advantage. Chinese are involved.

[sweet karolina] 21/11/2016 14:05

According to the admission document:

"The Group has successfully renewed both of the Licences and the Malawian authorities have thus far been cooperative in granting extensions. However, the Company is only entitled to renew the Licences twice, which it now has done in respect of both Licences. Prior to the end of the current Phalombe Licence the company plans to seek a Mining Licence."

It did not say when the current licence ended and it would now seem that was Jan 17 and an exceptional additional period has been granted. But only to Jan 19 by which time they should be applying for a full mining licence. There is at least 18 months worth of work to do before they would be in a position to apply for such a licence. None of that work can even start without some form of major investment to fund a DFS.

In the meantime what conditions did the Malawi government put on the extension. Past licences have had minimum expenditure commitments attached to them. MKA intend to do as little as they can whilst waiting for a partner to appear with a bucket load of cash. Could the expenditure commitments on the extended licence be what is behind doing an investor presentation with Mining Maven?

The PFS was first on the streets in Sept 14 and since then nobody has come forward to fund a DFS. MKA are clearly desperate for a partner with deep pockets (you have to have very deep pockets to play in the REE game). They are running out of time and will either need to accept a gun to the head offer if one is made or someone actually interested in the licence can just say to the Malawi govt that they are interested in taking it on from Jan 19 and they have the money to take the project forward, when MKA clearly do not.

Big numbers for NPVs at this stage of maturity are generally completely meaningless. Because of the lack of funding nothing is being done to prove up the resource and maybe move some of it from indicated to measured or to do anything else that would provide more confidence that the NPV has any validity (the update a year ago was around updating a few minor costs). Potentially interested parties have already had over 2 years to look at the PFS and thus far there has not been a nibble with no opportunity to put some more juicy bait on the hook.

[tidy 2] 21/11/2016 12:55

Everyone hates TW and BrokenmanDan the bank robber.

[colin12345678] 21/11/2016 11:39

everyone loves a Chinese

[jonnyfro] 18/11/2016 16:11

It's got a rail link

[andrbea] 18/11/2016 15:42

amc has plans for a long access road to its project, so mka is a bit similar with its need for the rail link

anyroad, big bucks being hurled at REE projects:

eg Canada
Nov 16 2016

Quest is planning an open pit and mill to be built at Strange Lake. The preliminary economic assessment posits a project with initial capital requirements of $1.63 billion with a mine life of 30 years. The net present value before taxes is $1.42 billion and the pre-tax internal rate of return is 20.1%. The project will have an average annual output of 4,400 tonnes of heavy rare earths and yttrium plus 6,000 tonnes of light rare earths.