REG - Mkango Resources Ltd - SONGWE PROJECT ANNOUNCED AS A STRATEGIC PROJECT

Mkango ResourcesAnnouncement

04/06/2025 12:30

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RNS Number : 4372L  Mkango Resources Limited  04 June 2025

 

 

 MKANGO RESOURCES LTD.
 550 Burrard Street
 Suite 2900
 Vancouver
 BC V6C 0A3
 Canada

 

MKANGO'S SONGWE HILL RARE EARTH MINING PROJECT ANNOUNCED AS A STRATEGIC
PROJECT UNDER EUROPEAN UNION CRITICAL RAW MATERIALS ACT

 

 

London / Vancouver: 4 June 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango" or the "Company") is pleased to announce that the Songwe Hill Rare
Earths Mining Project in Malawi ("Songwe") has been designated as a Strategic
Project by the European Commission under the Critical Raw Materials Act
("CRMA").

 

·  Strategic Project status confirms the importance of Songwe in supplying
rare earths to supply chains across Europe, North America and other markets.

·  Songwe is one of the very few rare earth projects globally to have
advanced to the NI 43-101 compliant Definitive Feasibility Study ("DFS")
stage, with a full Environmental, Social, Health Impact Assessment ("ESHIA")
also completed in compliance with IFC Performance Standards. A mining
development agreement was signed with the Government of Malawi in July 2024.

·  Based on the DFS, Songwe has an expected mine life of 18 years and will
produce a mixed rare earth carbonate ("MREC"), containing approximately 1,953
tonnes per annum of neodymium / praseodymium oxides and 56 tonnes
per annum of dysprosium / terbium oxides for the first five years of full
production.

·  Mkango's Pulawy Separation Project in Poland ("Pulawy"), which will
process the MREC from Songwe, was also previously designated a Strategic
Project under the CRMA in March 2025 (News | Mkango Resources Ltd.
(https://mkango.ca/news/mkangos-pulawy-rare-earth-separation-project-announced-as-a-strategic-project-under-eu-critical-raw-materials-act/)
).

·  Songwe and Pulawy will provide an integrated pure-play mined and refined
supply of rare earth oxides, with both projects designated strategic by the
European Commission.

·  As designated Strategic Projects, Songwe and Pulawy will benefit from
coordinated support from the EU Member States and financial institutions, in
particular in terms of access to finance and in supporting projects by
facilitating connections with future off-takers.

Strategic Project Status under the EU Critical Raw Materials Act

 

A list of 47 strategic critical raw material projects designated as Strategic
Projects under Regulation (EU) 2024/1252 of the European Parliament and of the
Council, commonly referred to as the Critical Raw Materials Act was released
on 25 March 2025. At that time, Pulawy was announced as one of the EU-based
strategic projects, with a further list of 13 international projects released
today including Songwe, one of only two rare earths projects.

 

Songwe has been assessed by the EU to be highly important to the EU's supply
security of strategic raw materials and possesses viable technical feasibility
within reasonable timeframes. Under the CRMA, the project is required to be
implemented in a sustainable manner, minimising environmental and social
impacts.

 

Obtaining Strategic Project status offers key advantages for developers,
significantly facilitating and accelerating the development of strategic raw
materials projects within and outside the EU.

 

As previously announced on 8 January 2025, a proposed SPAC merger (the
"Merger") between Mkango's subsidiary, Lancaster Exploration Limited
("Lancaster"), and certain other wholly-owned subsidiaries of Mkango and Crown
PropTech Acquisitions ("CPTK") will create a vertically integrated global pure
play rare earths platform that is intended to result in the ordinary shares of
Lancaster being listed on NASDAQ. Upon the Merger and listing, Lancaster, as
the listed entity, will hold the Songwe and Pulawy Projects.

 

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to
become a market leader in the production of recycled rare earth magnets,
alloys and oxides, through its interest in Maginito Limited ("Maginito"),
which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec Holdings
Corp ("CoTec"), and to develop new sustainable sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand from
electric vehicles, wind turbines and other clean energy technologies.

Maginito holds a 100 per cent interest in HyProMag Limited (HyProMag") and a
90 per cent direct and indirect interest (assuming conversion of Maginito's
convertible loan) in HyProMag GmbH ("HyProMag Germany"), focused on short loop
rare earth magnet recycling in the UK and Germany, respectively, and a 100 per
cent interest in Mkango Rare Earths UK Ltd ("Mkango UK"), focused on long loop
rare earth magnet recycling in the UK via a chemical route.

Maginito and CoTec are also rolling out HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA LLC joint venture company
("HyProMag USA").

Songwe is one of the few rare earth projects to have advanced to the NI 43-101
compliant Definitive Feasibility Study ("DFS") stage. The project has an
expected mine life of 18 years and is designed to produce a 55% mixed rare
earth carbonate, yielding approximately 1,953 tonnes per annum of NdPr and 56
tonnes per annum of DyTb.

The proposed Pulawy separation facility site is located in a Special Economic
Zone in Poland stands adjacent to the EU's second largest manufacturer of
nitrogen fertilisers, and features established infrastructure, access to
reagents and utilities on site.

 

For more information, please visit www.mkango.ca (about:blank)

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service, this inside information is
now considered to be in the public domain.

Cautionary Note Regarding Forward-Looking Statements

 

This news release contains forward-looking statements (within the meaning of
that term under applicable

securities laws) with respect to Mkango, its business, the Songwe, Pulawy,
HyProMag, HyProMag Germany, Mkango UK and HyPromag USA (the "Business").
Generally, forward looking

statements can be identified by the use of words such as "plans", "expects" or
"is expected to", "scheduled",

"estimates" "intends", "anticipates", "believes", or variations of such words
and phrases, or statements that

certain actions, events or results "can", "may", "could", "would", "should",
"might" or "will", occur or be

achieved, or the negative connotations thereof. Readers are cautioned not to
place undue reliance on forward-

looking statements, as there can be no assurance that the plans, intentions or
expectations upon which they are

based will occur. By their nature, forward-looking statements involve numerous
assumptions, known and

unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions,

forecasts, projections and other forward-looking statements will not occur,
which may cause actual performance

and results in future periods to differ materially from any estimates or
projections of future performance or

results expressed or implied by such forward-looking statements. Such factors
and risks include, without limiting

the foregoing, market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is exploring, researching and

developing, factors relating the development of Business, including the
outcome of the feasibility study, cost overruns, complexities in building and
operating plants, changes in economics and government regulation,

and delays in obtaining financing or governmental approvals or, and the impact
of environmental and other regulations relating to, the Business. The forward-
looking statements contained in this news release are made as of the date of
this news release. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any forward-

looking statements, whether as a result of new information, future events or
otherwise, except as required by

applicable law. Additionally, the Company undertakes no obligation to comment
on the expectations of, or

statements made by, third parties in respect of the matters discussed above.

 

For further information on Mkango, please contact:

 

Mkango Resources Limited

 

William
Dawes
Alexander Lemon
 
Robert Sewell

Chief Executive Officer
                                 President
 
Chief Financial Officer

will@mkango.ca (about:blank)
 
alex@mkango.ca (about:blank)
 
rob@mkango.ca

 

 

Burton
Kachinjika
Dr. Jarosław Pączek

Country Director - Malawi
Country Director - Poland

burton@mkango.ca (mailto:burton@mkango.ca)
 
jpaczek@mkango.ca

 

Canada: +1 403 444 5979

Poland: +48 664 144 130

www.mkango.ca

@MkangoResources

 

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 7186 9004/5

 

The TSX Venture Exchange has neither approved nor disapproved the contents of
this press release. Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a solicitation of
an offer to buy any equity or other securities of the Company in the United
States. The securities of the Company will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act") and may
not be offered or sold within the United States to, or for the account or
benefit of, U.S. persons except in certain transactions exempt from the
registration requirements of the U.S. Securities Act.

 

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