I have already flagged how Canadian Overseas Petroleum (COPL) and Pure Gold (PUR) misled investors, by hiding auditors' warnings. Now, Mkango Resources (MKA) has joined the deceiving club. The FCA, as regulator of the Standard List, must act. I have penned the letter below to Mark Steward at the FCA, and the bogus Sheriff of AIM, Marcus Stuttard.
Shares in Mkango Resources (MKA) rocketed last week after it announced a tie up with Singapore based Noble Group which committed Noble to invest £12 million to get a 49% stake in Mkango's Songwe asset. But folks fail to appreciate that there is no guarantee that Noble has the cash to meet its commitments. It's bonds are junk rated and it is quite simple fecked. And it gets worse.
The RNS from Mkango Resources (MKA) reads well. It has done a deal which sees Noble Group farm in to earn a 49% stake in the company's rare earth's project at Songwe by spending £12 million on the ground. But there is a bit of a caveat that bulls opt to ignore.
The sad tale of Mkango Resources (MKA) , the TSX dog listed on the AIM Casino by SP Angel in June 2016 continues but for how much longer? The grim reaper is polishing his scythe and CEO William Dawes better start brushing up on the rules of battleship if he is to avoid what seems an inevitable fate. It all started so well. Mkango was insolvent and so SP Angel raised it some cash about eight months behind schedule and listed it to great fanfare.
An announcement from now AIM as well as Canada-listed POS (as there were insufficient mug punters left in Canada), Mkango Resources (MKA) includes news of “a placing of 12,857,124 common shares at 3.5 UK pence per common share”. But wait a maple leafed minute, the June AIM Admission Document included that “working capital will be sufficient for at least the 12 months following Admission”!
I have no idea why Malcolm Palle of Mining Maven organises the events he does. He charges companies far less for his seminars than other folks so, after hiring a pleasant venue and providing booze and food for all as well as paying his own train fare down from the grim North he won't be making much. But all credit to him for putting on fun evenings. I commend him for his Saintly community spirit and reckon that more folks should pop along as I did last night.
