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Songwe Hill Rare Earth project set to be listed on US’s Nasdaq

Mkango Resources Limited has unveiled plans to list its Songwe Hill Rare Earth project in Phalombe on Nasdaq, a United States of America online global marketplace for buying and trading in securities.

Mining experts have said the development will provide exposure and ensure the miner easily accesses financing for mining development.

Mkango Resources has been conducting exploration works for rare earths at Songwe Hill in Phalombe

The move follows the signing of a non-binding letter of intent for a proposed business combination transaction with Crown PropTech Acquisitions (CPTK), a Cayman Islands exempted company.

The transaction will see Mkango Resources Limited’s subsidiaries Lancaster Exploration Limited which manages Songwe Hill Rare Earth project and Mkango Polska, which manages Pulawy Rare Earth Separation Plant in Poland, listing on Nasdaq.

In essence, the two subsidiaries and CPTK will create a new company, which will be listed and Mkango Resources Limited will retain a majority interest in the listed entity, according to chief executive officer William Dawes.

He said in a statement: “This transaction will create a vertically integrated global pure play rare earths platform that is intended to result in the class A ordinary shares of CPTK’s successor entity being listed on Nasdaq.

“The listed entity will hold Mkango’s Rare Earth project at Songwe Hill in Malawi and a proposed separation plant in Pulawy Poland.”

Dawes said Mkango’s interest in the HyProMag recycling business will not be part of the transaction.

The statement further says that Mkango Resources Limited and CPTK will announce additional details regarding the transaction when a definitive agreement has been executed, but stressed that the parties are currently considering the specific terms and structure of the tansaction, which are subject to due diligence as well as business, legal, tax, accounting, regulatory, stock exchange and other considerations.

In an interview yesterday, geologist Grain Malunga said “this will give it exposure to the market and financial resource mobilisation for the development of the project”.

The miner signed a mining development agreement with Malawi Government in July 2024.

In a separate interview, geologist Ignatius Kamwanje described the move as beneficial to the company, saying the reliability of Nasdaq will bring exposure by offering visibility of the project worldwide.

He said: “Nasdaq being a well-known and trusted exchange entity worldwide, Mkango will benefit in investor exposure and will offer visibility worldwide at the same time eyeing profits.

“By exposing itself worldwide, the project may find a new investor that will add to its project portfolio in Malawi. It will also stimulate liquidity giving shareholders sense of belonging, strength, growth and opportunitiest.”

CPTK is a Cayman Islands exempted special purpose acquisition company formed in 2021 to effect a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with one or more businesses.

Nasdaq is the world’s electronic exchange and operates 29 market in the USA and Europe.

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