Mr. William Dawes reports
MKANGO RESOURCES LIMITED ANNOUNCES LOI SIGNED WITH CROWN PROPTECH
Pursuant to the strategic review for the Songwe Hill rare earth project in Malawi and the Pulawy rare earth separation plant in Poland, Mkango Resources Ltd.'s wholly owned subsidiaries, Lancaster Exploration Ltd. and Mkango Polska Sp Zoo, have signed a non-binding letter of intent for a proposed business combination transaction with Crown PropTech Acquisitions (CPTK), a Cayman Islands exempted company.
This transaction will create a vertically integrated global pure play rare earth 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. 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 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 $500,000 (U.S.) will be financed upon the execution of the business combination agreement and the remaining $250,000 (U.S.) will be financed upon the initial filing of the registration statement with the U.S. Securities and Exchange Commission for the transaction. 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 Ltd., which is owned 79.4 per cent by Mkango and 20.6 per cent by Cotec Holdings Corp., 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 United Kingdom and Germany, respectively, and a 100-per-cent interest in Mkango Rare Earths U.K. Ltd, focused on long-loop rare earth magnet recycling in the United Kingdom through a chemical route. Maginito and Cotec are also rolling out HyProMag's recycling technology into the United States through the 50/50-owned HyProMag USA LLC joint venture. HyProMag is also evaluating other jurisdictions, and recently launched a collaboration with Envipro Technology Company Ltd. on rare earth magnet recycling in Japan.
Mkango owns the advanced-stage Songwe Hill rare earth project, an extensive rare earth, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earth separation project in Poland.
Songwe Hill is one of the few rare earth projects to have progressed to the definitive feasibility stage, with an expected life of mine of 18 years, producing a 55-per-cent mixed rare earth carbonate, yielding 1,953 tonnes per annum of NdPr and 56 tonnes per annum of DyTb.
Mkango's proposed Pulawy separation facility site, located in a special economic zone in Poland, stands adjacent to the European Union's second-largest manufacturer of nitrogen fertilizers and features established infrastructure, access to reagents and utilities on site.
Mkango's mining projects in Malawi and the Pulawy rare earth separation project in Poland are the subject of the transaction.
About Crown Proptech Acquisitions
Crown Proptech 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.
We seek Safe Harbor.
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