Letter of Intent signed with Crown Proptech to list Mkango’s Songwe Hill and Pulawy Rare Earths Projects on NASDAQ via a SPAC Merger
Mkango Resources Ltd (AIM/TSX-V: MKA), pursuant to the strategic review for the Songwe Hill Rare Earth project in Malawi (“Songwe”) and the Pulawy Rare Earth Separation Plant in Poland (“Pulawy”), is pleased to announce that Mkango’s wholly owned subsidiaries, Lancaster Exploration Limited (“Lancaster”) and Mkango Polska Sp. Z.o.o (collectively, the “Company”), have signed a non-binding letter of intent (“LOI”) for a proposed business combination transaction (the “Transaction”) with Crown PropTech Acquisitions (“CPTK”), a Cayman Islands exempted company (OTC: CPTK).
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 earths project at Songwe Hill in Malawi and a proposed separation plant in Pulawy Poland. It is expected that Mkango will retain a majority interest in the listed entity. Mkango’s interest in the HyProMag recycling business will not be part of the Transaction.
The Company and CPTK will announce additional details regarding the Transaction when a definitive agreement has been executed, if any (the “Business Combination Agreement”). The parties are currently considering the specific terms and structure of the Transaction, which are subject to due diligence as well as business, legal, tax, accounting, regulatory, stock exchange and other considerations. The Transaction will also be subject to customary closing conditions, including regulatory and stockholder approvals.
Simultaneously with the execution of the Business Combination Agreement, CPTK’s sponsor will arrange $750,000 in cash proceeds of which US$500,000 will be funded upon the execution of the Business Combination Agreement and the remaining US$250,000 will be funded upon the initial filing of the Registration Statement with the U.S. Securities and Exchange Commission for the Transaction (the “Sponsor Investment”). The Sponsor Investment will cover certain general corporate expenses of the Company.
About Mkango Resources Ltd.
Mkango’s corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited (“Maginito”), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec Holdings Corp. (“CoTec”), and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 per cent interest in the HyProMag recycling business and a 90 per cent direct and indirect fully-diluted interest in HyProMag GmbH (assuming conversion of Maginito’s convertible loan to HyProMag GmbH), focused on short loop rare earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd, focused on long loop rare earth magnet recycling in the UK via a chemical route. Maginito and CoTec are also rolling out HyProMag’s recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture. HyProMag is also evaluating other jurisdictions, and recently launched a collaboration with Envipro Technology Company Limited on rare earth magnet recycling in Japan.
Mkango owns the advanced stage Songwe Hill rare earths project, an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland.
Songwe Hill is one of the few rare earths projects to have progressed to the Definitive Feasibility Stage, with an expected life of mine of 18 years, producing a 55% mixed rare earth carbonate, yielding 1,953 tons per annum of NdPr and 56 tons per annum of DyTb.
Mkango’s proposed Pulawy separation facility site, located in a Special Economic Zone in Poland, stands adjacent to the EU’s second largest manufacturer of nitrogen fertilisers, and features established infrastructure, access to reagents and utilities on site.
Mkango’s mining projects in Malawi and the Pulawy rare earths separation project in Poland are the Subject of the Transaction.
For more information, please visit www.mkango.ca
About Crown Proptech Acquisitions
CPTK is a Cayman Islands exempted special purpose acquisition company formed in 2021 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, with approximately $ 5.7 million cash in trust.
For further information on Mkango, please contact:
Mkango Resources Limited, Lancaster Exploration Limited and Mkango Polska Sp. Z.o.o
Alexander Lemon William Dawes
President Chief Executive Officer
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
