Management Restructures Compensation
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Suite 2900
Vancouver
BC V6C 0A3
Canada
MANAGEMENT RESTRUCTURES COMPENSATION
London / Vancouver: May 10, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango" or the "Company") announces that, as part of its cost cutting initiatives and complementary to its recent £750,000 private placement closing, announced on 11th April, executive management salaries have been reduced by between 25% to 50% 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 £150,000 I subscribed for personally in the last private placement.''
About Mkango Resources Ltd.
| 1 | Details of the person discharging managerial responsibilities / person closely associated | |
| a) | Name | 1) William Dawes 2) Alexander Lemon 3) Robert Sewell |
| 2 | Reason for the notification | |
| a) | Position/status | 1) Chief Executive Officer 2) President and Co-Founder 3) Chief Financial Officer |
| b) | Initial notification /Amendment | Initial Notification |
| a) | Name | Mkango Resources Ltd |
| b) | LEI | 213800RPILRWRUYNTS85 |
| a) | Description of the financial instrument, type of instrument | RSU over common shares of nil par value each |
| Identification code | ISIN: CA60686A4090 | |
| b) | Nature of the transaction | Issue of Restricted Share Units |
| c) | Price(s) and volume(s) | Price(s) Volume(s) 1) nil 2) nil 3) nil 1,513,884 1,513,884 1,009,256 |
| d) | Aggregated information - Aggregated volume - Price | 4,037,024 RSU Price(s) Volume(s) 1-3) nil 4,037,024 |
| e) | Date of the transaction | 9 May 2024 |
| f) | Place of the transaction | Outside a trading venue |
| 1 | Details of the person discharging managerial responsibilities / person closely associated | |
| a) | Name | Derek Linfield |
| 2 | Reason for the notification | |
| a) | Position/status | Non-Executive Chairman |
| b) | Initial notification /Amendment | Initial Notification |
| a) | Name | Mkango Resources Ltd |
| b) | LEI | 213800RPILRWRUYNTS85 |
| a) | Description of the financial instrument, type of instrument | Options over common shares |
| Identification code | ISIN: CA60686A4090 | |
| b) | Nature of the transaction | Surrender of options over common shares |
| c) | Price(s) and volume(s) | Price(s) Volume(s) C$0.48 C$0.2025 1,000,000 250,000 |
| d) | Aggregated information - Aggregated volume - Price | 1,250,000 Options Price(s) Volume(s) C$0.48 C$0.2025 1,000,000 250,000 |
| e) | Date of the transaction | 9 May 2024 |
| f) | Place of the transaction | Outside a trading venue |
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