Mkango Resources shares were 50% higher on Thursday after announcing a deal the company believes will position them as a ‘key player in the global rare earth supply chain’.
Mkango Resources has announced a transformative business combination that will create a publicly traded rare earth platform set to benefit from the growing demand for critical materials used in renewable energy and technology.
The deal will merge Mkango’s Songwe Hill project in Malawi with the Pulawy separation facility in Poland, creating a vertically integrated operation that can mine, refine and separate rare earth materials for supply chains across North America, Europe and Asia.
The combined entity, to be called Mkango Rare Earths Limited, is expected to list on the Nasdaq stock exchange. Mkango’s pro forma valuation of their stake in the new entity is $400m.
Both projects have been designated as strategic under the EU Critical Raw Materials Act, providing regulatory support and potential funding opportunities. Songwe Hill has also received backing from the Minerals Security Partnership, demonstrating international confidence in the project.
Songwe Hill has already completed advanced feasibility studies and environmental assessments, significantly reducing development risk.
The vertical integration model—controlling everything from mining to final processing—should deliver higher margins and greater supply chain security.
“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,” said Alexander Lemon, President of Mkango.
“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.”