Transformative Merger: Mkango and CPTK Announce Plans for Rare Earths Giant

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Thursday, July 3, 2025

The importance of rare earths in producing many high-demand technologies was highlighted during U.S.–China trade talks, where they became a major sticking point before the countries reached an agreement. As a result, any news about rare earths continues to draw close attention from investors.

On this topic, Mkango Resources Ltd. (TSX-Venture: MKA) and Crown PropTech Acquisitions (OTC: CPTKW) announced this morning a definitive business combination agreement to create Mkango Rare Earths Limited, a vertically integrated, pure-play global rare earth platform. This new entity will own the Songwe Hill Rare Earths Project in Malawi and the Pulawy Rare Earth Separation Project in Poland—both designated as strategic under the EU Critical Raw Materials Act—with plans to list its shares on the Nasdaq exchange if the transaction closes.

Songwe Hill is one of the few rare earth projects globally to have completed a NI 43-101 compliant Definitive Feasibility Study and a full Environmental, Social, Health Impact Assessment. The combined platform aims to deliver mined, refined, and separated rare earth oxides to supply chains across North America, Europe, and Asia. The pro forma value of Mkango's shareholding in the new MKAR Group is estimated at US$400 million before expenses, with transaction proceeds supporting the development of both projects.

Alexander Lemon, President of Mkango, commented: "We are excited to announce the signing of a transformative Business Combination Agreement with CPTK, which I believe marks a pivotal step towards unlocking substantial shareholder value. This transaction is expected to significantly accelerate the growth trajectory of the Mkango group and position us as a key player in the global rare earth supply chain, with a strong emphasis on sustainability and critical industry demand. Partnering with CPTK, an organization that shares our strategic vision and values, enhances our platform for scalable growth and innovation. As we move towards a Nasdaq listing, we believe this combination will catalyse new opportunities, broaden our investor base, and drive long-term value creation."

Michael Minnick, CEO of CPTK, added: "We are excited to continue progressing this transaction forward. Based on the significant milestones achieved to date, we believe MKAR is uniquely-positioned to become an important provider of not only rare earth carbonates via its mining site in Malawi, Africa, but also a provider of rare earth oxides through its planned separation facility in Pulawy, Poland. This vertically integrated approach, we believe, will distinguish MKAR."

Shares of MKA popped 32.35% to $0.45 on the news. 

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