Mkango will seek a dual–listing on the Aim market of the London stock exchange following a C$1.5 mln placing of units at C$0.025 per unit.
Each unit will consist of one share and half a warrant priced at C$0.05.
The fundraising supersedes a previous C$500,000 funding announced in April.
The company said that the new money would be used to make further progress on its Songwe Hill rare earths project in Malawi, specifically to optimise the process flow sheet, and to continue with its environmental, social, and health impact assessment, which is a key part of the ongoing feasibility study.
Some money will also be earmarked to cover general running costs in Malawi.
Chief executive Will Dawes said that the listing in London would allow the company greater access to capital, provide a bigger audience in general and one that’s more familiar with Malawi, and potentially allow for a re-rating of the company’s shares to trade more in line with peers.
However, he also emphasised that existing ties between the company and its US and Canadian shareholder base and between the company and the Canadian government would remain of crucial importance.
Under the parameters of a pre-feasibility study completed last year, any potential development of Songwe looks a robust proposition.
As it stands, the project boasts an NPV of US$293 mln, and an internal rate of return of 36%. The mine life is set at 18 years.