Revolutionizing Malawi’s Economy: Songwe Hill Rare Earth Sets Sights on Nasdaq Listing in Q4

Key Business Points

• Listing on Nasdaq: Mkango Resources Limited’s Songwe Hill Rare Earth Project is expected to be listed on the US securities exchange by the fourth quarter of this year, opening up new investment opportunities for Malawi’s business community.
• Merger and Expansion: The listing will result in the merging of Mkango Resources’ subsidiaries, creating a new firm called Mkango Rare Earths Limited, which will focus on rare earth mining and separation, promoting growth and development in the sector.
• Local Investment Opportunities: The Malawi Government is encouraging companies to consider listing locally, allowing Malawians to invest in domestic projects and promoting economic growth through kugula mwala (buying shares) and kujitoleza (participating) in the country’s mining sector.

Mkango Resources Limited, the holding company of Songwe Hill Rare Earth Project in Phalombe District, has announced that the project’s listing on the US securities exchange, Nasdaq, will be completed by the fourth quarter of this year. This development is expected to boost the project’s growth and provide new investment opportunities for Malawi’s business community. The listing will result in the merging of Mkango Resources’ two subsidiaries, Songwe Hill Earth Project and Pulawy Separation Plant in Poland, with Crown Proptech Acquisitions, creating a new firm called Mkango Rare Earths Limited.

The new company will focus on rare earth mining and separation, with the transaction proceeds supporting Mkango Rare Earth Limited’s strategic growth plan, including the development of the Songwe project. Mkango Resources has been conducting exploration works for rare earths at Songwe Hill in Phalombe, and the company has signed a Mining Development Agreement (MDA) with the Malawi Government, which owns a 10 percent shareholding in the project.

The Mining and Minerals Regulatory Authority director general, Samuel Sakhula, has confirmed that they are aware of the listing and do not restrict companies from raising funds through foreign stock markets. However, he encouraged companies to also consider listing locally, allowing Malawians to invest in domestic projects and promoting economic growth. Kunja kwa ulimbi (investment opportunities) in the mining sector are expected to increase, providing a chance for Malawian entrepreneurs to participate and contribute to the country’s economic development.

Geologist Ignatius Kamwanje has noted that the activeness of various mining companies in financing modalities shows their commitment to developing the projects, which is expected to have a positive impact on Malawi’s economy. The Malawi Government’s MDA with Mkango Resources includes a five percent royalty of gross revenue, providing a stable source of income for the government. As the listing on Nasdaq approaches, Malawian business owners and entrepreneurs are advised to seize the opportunity and invest in the project, promoting local economic growth and development through kufufuza malo (creating wealth).

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