Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”)
is pleased to announce that HyProMag Limited (“HyProMag”) and
partners, European Metal Recycling Limited (“EMR”) and University
of Birmingham (“UoB”) have successfully completed the previously
announced REAP project (“Rare-Earth Extraction from Audio
Products”) (the “Project”).
Mkango’s subsidiary, Maginito Limited
(“Maginito”), holds a 25 per cent equity interest in HyProMag, with
an option to increase its interest up to 49 per cent. Maginito has
the first right to supply primary production, if required for
blending with recycled production from HyProMag, as well as product
offtake and marketing rights.
Rare earth magnets play a key role in clean
energy technologies including electric vehicles and wind turbine
generators, but they are also a key component in electronic devices
including mobile phones, hard disk drives and loudspeakers.
Loudspeakers account for approximately 20 per cent of the current
market for rare earth magnets, according to Adamas Intelligence,
and therefore represent a significant opportunity for rare earth
magnet recycling.
The UK has no domestic source of primary rare
earths. The development of domestic sources of recycled rare earths
via HPMS (Hydrogen Processing of Magnet Scrap), a homegrown
technology, is a significant opportunity for the UK to fast-track
the development of sustainable and competitive rare earth magnet
production. The short loop recycling processes which are being
scaled up by HyProMag will have a significant environmental
benefit, requiring 88 per cent less energy compared to conventional
production of magnets from primary sources.
William Dawes, Chief Executive of Mkango
stated: “This is a significant milestone for HyProMag,
University of Birmingham and European Metal Recycling,
demonstrating another potential source of both feedstock and route
to market for recycled rare earth magnets. Recycling is a key
component of Mkango’s “mine, refine, recycle” strategy via its
strategic interest in HyProMag, and will become an increasingly
important part of the rare earth supply chain in the UK, Europe and
elsewhere. HyProMag is well positioned to unlock that supply chain
with access to the technology, expertise and network of
partnerships to make it happen, and Mkango looks forward to
supporting HyProMag as it scales up to commercial production.”
Nick Mann, Operations General Manager of
HyProMag stated: “HyProMag is very pleased to have
successfully completed this groundbreaking project, which has
identified a useful and accessible source of end of life magnets
that can be collected, extracted and remanufactured on a
commercially viable basis. As demand and therefore price of NdFeB
magnets continues to rise, the need to capture waste material for
recycling becomes imperative for economic as well as environmental
reasons. REAP further advances the novel techniques required to
recycle rare earth magnets from audio products, which account for
around 20 per cent of the NdFeB market each year. HyProMag looks
forward to developing these techniques alongside EMR with a view to
further scale up and commercialisation.”
Fundamental to the REAP Project is the patented
HPMS process for extracting and demagnetising neodymium iron boron
(“NdFeB”) alloy powders from magnets embedded in scrap and
redundant equipment, originally developed within the Magnetic
Materials Group at the UoB and subsequently licenced to
HyProMag.
The other Project partner, EMR, is a global
leader in metal recycling, operating at 150 locations around the
world, and the largest automotive recycler in the UK.
EMR pre-processed automotive and flat screen TV
loudspeaker scrap to provide a feed of scrap components containing
NdFeB magnets to HyProMag. HyProMag used the HPMS process in
conjunction with the UoB to extract the magnets as a demagnetised
alloy powder, which was then used in the remanufacture of
magnets.
The REAP Project
The aim of REAP was to build on previous
knowledge of recycling of NdFeB magnets from hard disk drives,
using HPMS, and to investigate a new scrap stream from
loudspeakers, specifically from end of life vehicles (“ELV”) and
flat screen TVs (“FSTS”).
EMR performed a comprehensive assessment of both
ELV and FSTS scrap, encompassing extraction, characterisation of
components, degree of pre-processing and potential for
automation.
Meanwhile, HyProMag and UoB provided analysis of
the extracted magnets, with a particular focus on determining the
overall recyclability and market potential of the ELV and FSTS
sectors, both as a viable feedstock of NdFeB and also as a
potential route-to-market. ELV scrap showed a relatively low
quantity of NdFeB containing components (approximately 5 per cent)
and given the low quantity of NdFeB found in each of these
products, it is clear that more focus should be placed on hybrid
and electric vehicles rather than internal combustion engine
vehicles. With the increase in electric vehicles and general rare
earth usage, it is fair to assume that the potential for capturing
NdFeB from the ELV sector will increase significantly with
time.
The FSTS sector showed significant promise for
recycling, with approximately 85 per cent of the products
containing NdFeB. REAP confirmed the quantity of scrap available
from the FSTS market, the commercial viability, the suitability of
material for HPMS and the properties of the magnets in this sector,
and provides a strong platform to initiate access to the wider
loudspeaker market in the future.
While some variation does exist within both the
ELV and FSTS sectors, the average magnet grade remains reasonably
consistent. Following extraction, the magnets were taken through
the HPMS process and the resultant liberated powder was analysed to
confirm the feasibility of the FSTS sector as feedstock.
The liberated powder was chemically
characterised, purified, and re-sintered into a new magnet with
minor additions of virgin rare-earth hydride material. The
re-sintered magnets have comparable magnetic properties to the
initial starting magnet. This promising result highlights that the
HPMS process can be used to create a new feedstock for recycled
magnet making which is currently lost to landfill.
About HyProMag
The Magnetic Materials Group within the School
of Metallurgy and Materials at the UoB has been active in the field
of rare earth alloys and processing of permanent magnets using
hydrogen for over 40 years. Originated by Professor Rex Harris, the
hydrogen decrepitation method, which is used to reduce NdFeB alloys
to a powder, is now ubiquitously employed in worldwide magnet
processing.
In a further development, the MMG patented a
process for extracting and demagnetising NdFeB powders from magnets
embedded in redundant equipment using hydrogen in a process called
HPMS (Hydrogen Processing of Magnet Scrap). This patent and related
intellectual property is at the core of HyProMag’s business. The
MMG continues to develop new research and development
opportunities, cooperates widely in Europe, including a major EU
project, SusMagPro, which is also focused on recycling of magnets.
The directors of HyProMag all provide their expertise to the MMG
and there is potential for HyProMag to gain possible future access
to new intellectual property.
HyProMag is also a partner in the Innovate UK
grant funded project, “Rare-Earth Recycling for E-Machines”
(“RaRE”) together with UoB, Advanced Electric Machines Research
Limited, Bentley Motors Limited, Intelligent Lifecycle Solutions
Limited and Unipart Powertrain Applications Limited.
RaRE will for the first time establish an end to
end supply chain to incorporate recycled rare earth magnets into
electric vehicles, whereby recycled magnets will be built into an
electric motor to ultimately support the development of a
commercial versatile motor suite.
HyProMag’s strategy is to establish a recycling
facility for NdFeB magnets at Tyseley in Birmingham to provide a
sustainable solution for the supply of NdFeB magnets and alloy
powders for a wide range of markets including, for example,
automotive and electronics. A number of product options are being
evaluated including hydrogen decrepitated (HD) demagnetised powders
suitable for magnet producers, alloy ingot remelted from HD powders
suitable for alloy feed or magnet production, anisotropic alloy
powders (HDDR) for bonded magnets and sintered NdFeB magnets as
required by the RaRE project for automotive applications.
The founding directors of HyProMag, comprising
Professor Emeritus Rex Harris, former Head of the MMG, Professor
Allan Walton, current Head of the MMG, and two Honorary Fellows, Dr
John Speight and Mr David Kennedy, are leading world experts in the
field of rare earth magnetic materials, alloys and hydrogen
technology, and have significant industry experience. Following the
investment by Maginito, HyProMag appointed William Dawes, a
Director of Maginito and Chief Executive Officer of Mkango, to the
Board of HyProMag.
For more information, please visit
https://hypromag.com/.
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 ('RIS'), this inside information is now
considered to be in the public domain.
About Mkango
Resources Limited
Mkango's corporate strategy is to develop new
sustainable primary and secondary sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare
earths sector.
Mkango is developing Songwe Hill in Malawi with
a Feasibility Study targeted for completion in Q1 2022. Malawi is
known as “The Warm Heart of Africa”, a stable democracy with
existing road, rail and power infrastructure, and new
infrastructure developments underway.
In parallel, Mkango recently announced that
Mkango and Grupa Azoty PULAWY, Poland's leading chemical
company and the second largest manufacturer of nitrogen and
compound fertilizers in the European Union, have agreed to
work together towards development of a rare earth Separation Plant
at Pulawy in Poland. The Separation Plant will process the purified
mixed rare earth carbonate produced at Songwe.
Through its subsidiary Maginito
(www.maginito.com), Mkango is also developing green technology
opportunities in the rare earths supply chain, encompassing
neodymium (NdFeB) magnet recycling as well as innovative rare earth
alloy, magnet, and separation technologies. Maginito holds a 25%
interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com) with an option to increase its interest to
49%.
Mkango also has an extensive exploration
portfolio in Malawi, including the Mchinji rutile discovery, for
which assay results are pending, in addition to the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt
project.
For more information, please
visit www.mkango.ca.
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, HyProMag,
the Separation Plant and Songwe. 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, technical and commercial risks in scaling
up HyProMag’s business to commercial production, governmental
action relating to COVID-19, COVID-19 and other 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 the Separation Plant, including
the outcome and timing of the completion of the feasibility
studies, cost overruns, complexities in building and operating the
Separation Plant, changes in economics and government regulation,
the positive results of a feasibility study on Songwe Hill and
delays in obtaining financing or governmental approvals for, and
the impact of environmental and other regulations relating to,
Songwe Hill and the Separation Plant. 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 |
Chief Executive Officer |
President |
will@mkango.ca |
alex@mkango.ca |
Canada: +1 403 444 5979 |
|
www.mkango.ca |
|
@MkangoResources |
|
BlytheweighFinancial Public
RelationsTim BlytheUK: +44 207 138 3204
SP Angel Corporate Finance
LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470
Alternative Resource
CapitalJoint BrokerAlex Wood, Keith DowsingUK: +44 20 7186
9004/5
Bacchus Capital
AdvisersStrategic and Financial AdviserRichard Allan,
Andrew KrelleUK: +44 20 3848 1642 / +44 79 5636 2903
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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