Lancaster Exploration (Lancaster), a subsidiary of Mkango Resources (Mkango), has announced a merger with Crown PropTech Acquisitions (CPTK), a US-listed special purpose acquisitions company.

Mkango, which is listed on the AIM and TSX, said the planned group would create a global pureplay rare earths platform, comprised of the Songwe Hill project in Malawi and Pulawy separation plant in Poland.  The merged entity, Mkango said in a release on July 3, will be named Mkango Rare Earths Limited (MKAR) and listed on Nasdaq.

Mkango president, Alexander Lemon, said the business combination deal will mark 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 organisation that shares our strategic vision and values, enhances our platform for scalable growth and innovation."

The planned combinations is still subject to customary regulatory and shareholder approval.

Mkango says the Songwe Hill Project is "one of the few" rare earth projects to have advanced to a NI 43-101-compliant definitive feasibility study globally.

"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," commented CPTK CEO Michael Minnick.