Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce that it has increased its interest in
HyProMag from 25% to 41.6% following the exercise by HyProMag of
its right to convert into shares of HyProMag the £200,000
convertible loan which formed part of the £500,000 financing
package completed in January 2020. HyProMag is pioneering
commercialisation of short loop magnet recycling via the patented
Hydrogen Processing of Magnet Scrap (HPMS) technology. The HPMS
process for extracting and demagnetising neodymium iron boron
(“NdFeB”) alloy powders from magnets embedded in scrap and
redundant equipment, was originally developed within the Magnetic
Materials Group at the University of Birmingham and subsequently
licenced to HyProMag.
Rare earth magnets play a key role in clean
energy technologies including electric vehicles and wind turbine
generators, and they are also a key component in electronic devices
including mobile phones, hard disk drives and loudspeakers.
The UK has no domestic source of primary rare
earths. The development of domestic sources of recycled rare earths
via HPMS, 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% less energy compared to
conventional production of magnets from primary sources and
generating an estimated 98% saving in human toxicity.
Mkango has established a new UK subsidiary,
Mkango Rare Earths UK Limited, to develop complementary
opportunities in rare earth recycling and green technologies in the
UK, and the Company is working closely with HyProMag and University
of Birmingham to capitalise on growth opportunities.
Mkango’s 41.6% interest in HyProMag is held via
100% owned subsidiary, Maginito Limited (“Maginito”), which has an
option to increase its interest in HyProMag up to 49%. 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.
William Dawes, Chief Executive of
Mkango, stated: “We are very pleased to increase our
interest in HyProMag, which has the technology, team and network of
partnerships to unlock the supply chain for rare earth magnet
recycling. We look forward to supporting its future growth as it
scales up to commercial production and developing new opportunities
for collaboration in the recycling sector. Recycling is a key
component of Mkango’s “mine, refine, recycle” strategy and will
become an increasingly important part of the rare earth supply
chain in the UK, Europe and elsewhere.”
About HyProMag
The Magnetic Materials Group within the School
of Metallurgy and Materials at the University of Birmingham 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, European Metal Recycling Limited
(“EMR”) and University of Birmingham recently completed the REAP
project (Rare-Earth Extraction from Audio Products). 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
University of Birmingham to extract the magnets as a demagnetised
alloy powder, which was then successfully used in the remanufacture
of magnets.
HyProMag also leads the Innovate UK grant funded
project, “Rare-Earth Recycling for E-Machines” (“RaRE”) with
partners University of Birmingham, 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 ancillary electric motor to ultimately support the development
of a commercial ancillary motor suite.
HyProMag’s strategy is to establish recycling
facilities for NdFeB magnets at Tyseley in Birmingham and other
locations 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 ownership of 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 now holds a
41.6% 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, 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 as well as HyProMag being able to
commercialise its HPMS and other technologies, MMG being successful
in developing new research and other opportunities (and whether
these opportunities will be available to HyProMag), and whether
HyProMag is able to successfully establish recycling facilities for
NdFeB magnets at Tyseley in Birmingham and other locations to
provide a sustainable solution for the supply of NdFeB magnets and
alloy powders. 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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