LONDON, UNITED KINGDOM--(Marketwire - March 1, 2013) - Leo Mining and Exploration Limited ("Leominex") is pleased to announce that it has acquired 4,285,715 units (the "Units") of Mkango Resources Ltd. ("Mkango") on a non-brokered private placement basis at a price per Unit of C$0.175 and for an aggregate subscription price of C$750,000. Each Unit consists of one common share (a "Common Share") and one-half of one common share purchase warrant of Mkango (a "Warrant"). Each whole Warrant entitles the holder to acquire one Common Share for C$0.35 for a period of 12 months following the closing date of the financing. Where the closing price of the common shares on the TSX Venture Exchange equals or exceeds C$0.40 for 20 consecutive trading days following the date that is four months and one day after the date of issuance of the Warrants, the Corporation shall have the right to require conversion of the Warrants at the exercise price upon 30 days' notice. Leominex acquired the Units pursuant to a subscription agreement dated March 1, 2013.
After giving effect to the acquisition referred to above, Leominex owns and controls a total of 24,138,614 Common Shares, representing approximately 58% of the issued and outstanding Common Shares of Mkango on an undiluted basis. Leominex also owns and controls a total of 2,142,857 Warrants.
Leominex acquired the Units for investment purposes. Leominex may, depending on market and other conditions, increase or decrease its beneficial ownership control or direction over the Common Shares through market transactions, private agreements, treasury issuances, exercise of options, warrants, convertible securities or otherwise.
Leominex's registered office is located at Palm Grove House, PO Box 438, Road Town, Tortola, British Virgin Islands. For further information or to obtain a copy of Leominex's early warning report please visit Mkango's profile on SEDAR at www.sedar.com.