Madagascan rare earths divestment completed

On Tuesday, MNB announced the divestment of its interests in its Madagascan rare earths project.

MNB’s interests in the project at the moment is an exclusive option agreement that was signed in 2018 which gave MNB the right to acquire up to a 90% interest in the project.

MNB’s divestment comes as the sale of this option (exclusive right to acquire that 90%) for a total consideration of $2.48M contingent on due diligence being completed.

The acquirer (ALS Hong Kong) has ~8 months to complete this due diligence and needs to exercise the option before the 7th of November 2022.

The payments to MNB will be $10,000 per month for that 8 month period and a $2.4M cash payment if the option is exercised by ALS Hong Kong.

This divestment means MNB can focus more capital towards the development of its Angolan fertiliser project. We will be releasing our 2022 Investment Memo for MNB very soon where we will set some expectations for what we want to see MNB achieve in 2022.