Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) saw its shares leap 46% after announcing a merger that will create a dedicated global rare earths company listed on Nasdaq.
The deal combines Mkango’s Songwe Hill project in Malawi and Pulawy separation plant in Poland under a new entity, Mkango Rare Earths Limited (MKAR).
The transaction, valued at US$400 million, is backed by Crown PropTech Acquisitions and aims to build a vertically integrated supply chain for rare earth oxides targeting North America, Europe and Asia.
Both projects have been recognised as strategic under the EU Critical Raw Materials Act, offering potential regulatory and financing support.
Mkango will retain a majority stake in MKAR following the merger. Final approval is subject to shareholder and regulatory sign-offs.
If completed, the move positions Mkango as a rare pure-play in the sector, amid growing demand for critical minerals essential to green technologies and defence applications.
The stock rose 8p to 25.5p.