Mkango Resources Ltd (AIM:MKA)(TSXV:MKA) ('Mkango'), as part of its strategic review for the Songwe Hill Rare Earth project in Malawi ('Songwe') and the Pulawy Rare Earth Separation Plant in Poland ('Pulawy'), announced that its wholly owned subsidiaries, Lancaster Exploration Limited ('Lancaster') and Mkango Polska Sp. Z.o.
o (collectively, the 'Company'), 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, 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. Mkango 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