Mkango moves to spin off assets through Nasdaq shell
Aim-listed Mkango Resources has entered into a nonbinding letter of intent (LOI) with Crown PropTech Acquisitions (CPTK), aimed at combining their businesses and listing a new entity on Nasdaq.
The transaction involves Mkango’s wholly owned subsidiaries Lancaster Exploration and Mkango Polska and follows a strategic review for the Songwe Hill rare earth project in Malawi and the Pulawy rare earth separation plant in Poland.
The proposed transaction will create a vertically integrated global pure play rare earths platform, incorporating Mkango's rare earths project at Songwe Hill and a proposed separation plant in Pulawy. The successor entity of CPTK will be listed on the Nasdaq with Mkango expected to retain a majority interest in the listed entity.
However, Mkango's interest in the HyProMag recycling business will not be part of the transaction.
The company and CPTK will announce additional details about the transaction when a definitive agreement has been executed, if any.
Mkango says 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 will be funded upon the execution of the business combination agreement, and the remaining $250 000 will be funded upon the initial filing of the Registration Statement with the US Securities and Exchange Commission for the transaction.
Mkango says the sponsor investment will cover certain general corporate expenses of the company.
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