(MENAFN- ProactiveInvestors)Rare earth explorer Mkango (CVE:MKA) is worth C15c per share after its updated pre-feasibility study for Songwe Hill in Malawi according to mining house Hallgarten. An offtake agreement is now the one missing piece in the puzzle for the explorer said the US broker. It will need this to fund the US$216mln upfront required to take Songwe Hill into production though Hallgarten added Mkango already has one of the strongest group of institutional/core shareholders it has seen in a rare earths explorer. This superior collection of backers is a key separator from rivals 'who only have an amorphous and shifting body of retail investors to rely upon'. 'Mkango has put together a strong alliance that now only needs an offtaker in the mix.' The decision to go for an AIM listing rather than quasi-private ownership also shows belief in the 'doability of its Songwe project'. The latest financing meanwhile showed it is doing the right things in diligently aligning the ducks for eventual production. The AIM listing should put it in front of a better informed audience with knowledge of Africa's risks and opportunities. 'A long opportunity with a twelve-month target price of C$0.15' the bank concludes.
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