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Shares in Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) rose 5% to 37.1p on Friday after the rare earths company closed a £12.5 million investment round to fund a potential acquisition in Germany and expand its processing operations.
The raise comprised a placing of 30.9 million shares at 33p each, generating around £10.2 million, alongside a retail offer, a subscription and a Canadian-listed issuer financing exemption offering.
New shares have been admitted to trading on AIM, with conditional acceptance for listing on the TSX Venture Exchange subject to standard closing conditions.
Proceeds will support a potential acquisition in Germany, fund feasibility studies on the expansion of its UK and German processing plants, and cover working capital requirements.
Mkango operates across the rare earths supply chain, with interests spanning mining in Malawi through to separation and magnet recycling in the UK and Europe.
Rare earths have attracted growing investor interest as Western governments push to reduce dependence on Chinese supply chains for critical minerals used in electric vehicles and clean energy technology.