REG - Mkango Resources Ltd - Land Lease Agreement Signed in Poland

Mkango ResourcesAnnouncement

17/02/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250217:nRSQ3259Xa&default-theme=true

RNS Number : 3259X  Mkango Resources Limited  17 February 2025

 

Land Lease Agreement Signed To Construct a Rare Earths Separation Plant In
Poland with Grupa Azoty Pulawy

London / Vancouver: February 17, 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA)
("Mkango"), is pleased to announce that Mkango's wholly owned subsidiary,
Mkango Polska Sp. Z.o.o, has signed a revised exclusive land lease agreement
("the Agreement") with Grupa Azoty Pulawy for the construction of a strategic
rare earths separation plant in Poland. The Agreement constitutes a
continuation of cooperation that the parties first started in 2021.

The Agreement is for a large 8 hectare site adjacent to Grupa Azoty Pulawy's
fertilizer and chemicals complex at Pulawy in Poland (the "Site"). The site
provides excellent infrastructure, access to reagents and utilities and covers
a substantial area which enables future expansion potential.

Located within a Polish Special Economic Zone, the Site also provides
excellent access to European and international markets. Production from the
plant will strengthen Europe's security of supply for rare earths, used in
plug-in electric vehicles, hybrid electric vehicles, wind turbines and other
green technology and strategic applications. It also aligns with European
initiatives to create more robust, diversified supply chains through the
latest European Union Critical Raw Materials Regulations.

Alexander Lemon, President of Mkango stated: "We are delighted to have signed
a revised exclusive land lease agreement adjacent to the Grupa Azoty Pulawy
which will enable future separation plant expansion. We very much value
working closely with Grupa Azoty and look forward to completing a definitive
feasibility study on the rare earth separation plant and starting
construction."

Hubert Kamola, Vice-President of the Management Board of Grupa Azoty S.A
stated: "The project is very innovative and provides an opportunity to create
new jobs and transfer new technologies and creates the potential to develop a
critical materials supply chain for Europe and North America. Developing
partnerships is a key driver for our Azoty Business Program. There are many
synergies that the site provides such as land, utilities, reagents and
chemical engineering expertise, which is why we are supporting this exciting
business development"

About Mkango Resources Ltd

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 the HyProMag recycling business and
a 90 per cent direct and indirect fully-diluted interest in HyProMag GmbH
(assuming conversion of Maginito's convertible loan to HyProMag GmbH), 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, focused on long loop
rare earth magnet recycling in the UK via a chemical route. Maginito and CoTec
are also rolling out HyProMag recycling technology into the United States via
the 50/50 owned HyProMag USA LLC joint venture. HyProMag is also evaluating
other jurisdictions, and recently launched a collaboration with Envipro
Technology Company Limited on rare earth magnet recycling in Japan.

Mkango owns the advanced stage Songwe Hill rare earths project, an extensive
rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration
portfolio in Malawi, and the Pulawy rare earths separation project in Poland.

Songwe Hill is one of the few rare earths projects to have progressed to the
Definitive Feasibility Stage, with an expected life of mine of 18 years,
producing a 55% mixed rare earth carbonate, yielding 1,953 tons per annum of
NdPr and 56 tons per annum of DyTb.

Mkango's proposed Pulawy separation facility site, 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.

Mkango has signed a letter of Intent with  Crown PropTech Acquisitions to
list Mkango's Songwe Hill and Pulawy Rare Earths Projects on NASDAQ via a SPAC
Merger.

For more information, please visit www.mkango.ca (http://www.mkango.ca)

About Grupa Azoty Pulawy

Grupa Azoty Pulawy a subsidiary of Grupa Azoty Capital Group is the leading
supplier of nitrogen fertilisers for Polish agriculture and is the second
largest producer of nitrogen multi-component fertilizers in European Union and
a major producer of melamine, polyamide, OXO alcohols, plasticizers and
titanium white.

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, the
Company, CPTK, their businesses and the Transaction.

Generally, forward looking statements can be identified by the use of words
such as "plans", "expects" or "is expected", "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.

Forward looking statements in this news release include, but are not limited
to, statements with respect to the global market for rare earth metals, the
ability to develop a separation plant at Pulway, the merger with CPTK and the
listing on NASDAQ,. 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 for the metals and associated
downstream products for which Mkango or the Company is exploring, researching
and developing, delays in obtaining financing or governmental or stock
exchange approvals and other risks that are detailed in the periodic reports
filed by CPTK with the U.S. Securities and Exchange Commission. The
forward-looking statements contained in this news release are made as of the
date of this news release. Except as required by law, each of Mkango and
 Grupa Azoty Pulawy disclaim 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, each of Mkango and Grupa Azoty Pulawy 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, Lancaster Exploration Limited and Mkango Polska Sp.
Z.o.o

Alexander Lemon
                 William Dawes
 

President
                           Chief Executive Officer

alex@mkango.ca
will@mkango.ca

Canada: +1 403 444
5979

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

UK: +44 20 7186 9004

Cohen Capital

Strategic and Financial Adviser

Brandon Sun

USA: +1 929 432 1254

Welsbach Corporate Solutions LLC-FZ

Supply Chain Advisor

Daniel Mamadou

SG: +65 6879 7107

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 shall not constitute an offer to sell, or a
solicitation of an offer to buy, or a recommendation to purchase, any
securities in any jurisdiction, or the solicitation of any vote, consent or
approval in any jurisdiction in connection with or with respect to the
proposed Transaction, nor shall there be any sale, issuance or transfer of any
securities in any jurisdiction where, or to any person to whom, such offer,
solicitation or sale may be unlawful under the laws of such jurisdiction. This
press release does not constitute either advice or a recommendation regarding
any securities. No offering of securities shall be made except by means of a
prospectus meeting the requirements of the Securities Act of 1933, as amended,
or an exemption therefrom.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRDZGMZLVGGKZM