Mkango Resources Limited, the holding company of Songwe Hill Rare Earth Project in Phalombe District, says the project’s listing on US securities exchange, Nasdaq will be completed by the fourth quarter of this year.
In a corporate presentation to investors last week, Mkango Resources Limited chief executive officer William Dawes said the listing will result in the merging of its two subsidiaries Songwe HillEarth Project and Pulawy Separation Plant in Poland, with Crown Proptech Acquisitions.
He said the business combination will result in a new firm called Mkango Rare Earths Limited, which will be focusing on rare earth mining and separation.
Reads part of the presentation: “Transaction proceeds will support Mkango Rare Earth Limited’s strategic growth plan, including development of Songwe project.”
Mining and Minerals Regulatory Authority director general Samuel Sakhula said they are aware of the listing of Songwe Project on Nasdaq, adding that they do not restrict companies from raising funds through foreign stock markets.
“Just as they raise capital through listing elsewhere, we encourage them to also consider listing locally because by doing so, Malawians will have the opportunity to invest in the projects,” he said.
In an interview on Thursday, geologist Ignatius Kamwanje said the activeness of various mining companies on financing modalities shows how they are committed to developing the projects.
Mkango Resources, through Lancaster Exploration, signed a Mining Development Agreement (MDA) for Songwe Hill Rare Earth Project with the Malawi Government in July 2024.
In the pact, the Malawi Government owns 10 percent shareholding. Other key components of the MDA include five percent royalty of gross revenue.
