Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) primary asset the Songwe Hill Rare Earth project, in Malawi, is to be brought into a SPAC deal that will result in a listing on NASDAQ.
The AIM-quoted firm, in a statement, said it had signed a non-binding Letter of Intent (LOI) with Crown PropTech Acquisitions for a proposed business combination.
It also sees the Pulawy Rare Earth Separation Plant, in Poland, brought into the vehicle.
Mkango told its shareholders that it expects to hold the majority interest in the SPAC, and, the NASDAQ vehicle would not include the firm’s separate recycling business.
"This transaction will create a vertically integrated global pure-play rare earths platform,” Mkango said in a statement.
Crown PropTech’s sponsor has committed $750,000 to support corporate expenses related to the merger.
Any deal remains subject to due diligence, regulatory approvals, and other customary conditions.