3rd Jul 2025 13:21
(Alliance News) - Mkango Resources Ltd on Thursday said it has agreed a business combination deal to take its rare earths business public on Nasdaq, in a move that values its stake in the new entity at USD400 million.
The Malawi-focused producer of recycled rare earth magnets, alloys, and oxides said the deal will see Mkango's wholly owned subsidiary, Lancaster Exploration Ltd, which owns the Songwe Hill project in Malawi and the Pulawy separation plant in Poland, merge with other Mkango subsidiaries and Crown PropTech Acquisitions, a US-listed special purpose acquisition company.
Shares in Mkango were up 47% at 25.69 pence in London on Thursday afternoon.
The combined business will be renamed Mkango Rare Earths Ltd and apply to list its shares on Nasdaq under the ticker MKAR.
Mkango said the move creates a vertically integrated rare earths platform supplying critical raw materials to Europe, North America and Asia. Songwe Hill and Pulawy have both been designated strategic projects under the EU's Critical Raw Materials Act, and Songwe Hill is also backed by the Minerals Security Partnership.
"This transaction is expected to significantly accelerate the growth trajectory of the Mkango group and position us as a key player in the global rare earth supply chain," said Mkango President Alexander Lemon. "Partnering with CPTK enhances our platform for scalable growth and innovation."
The transaction is expected to complete in the fourth quarter of 2025, subject to regulatory and shareholder approvals, including from the TSX Venture Exchange and Nasdaq.
Mkango said it will retain a "significant majority equity interest" in Mkango Rare Earths after completion.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Mkango Resources