Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”)
is pleased to announce that its 100% owned subsidiary, Mkango UK,
is collaborating with B&W Group, EMR, GKN Automotive, HyProMag,
Jaguar Land Rover and UoB in a £3.4 million magnet recycling
project, SCREAM, of which £2.4 million or 71% will be funded by
Driving the Electric Revolution, an Industrial Strategy Challenge
Fund challenge delivered by UK Research and Innovation (UKRI).
The budget for Mkango UK’s chemical processing
pilot plant programme, to be developed as part of the Project, is
£1.1 million, of which £0.8 million or 70% will be funded by UKRI.
Mkango UK was established by Mkango to evaluate and develop
complementary opportunities in rare earth recycling and green
technology in the UK.
Mkango also holds a 42% interest in SCREAM
project partner, HyProMag, together with certain offtake and supply
rights. HyProMag is pioneering commercialisation of short loop rare
earth magnet recycling in the UK and Germany using HPMS
technology.
William Dawes, Chief Executive of Mkango
stated: “We are very excited about this innovative project
and the opportunity to develop chemical processing of NdFeB magnet
scrap in the UK alongside supporting the scale up of the HPMS
technology via our strategic interest in HyProMag. We envisage that
the recycling of rare earth magnets will play a key role in the
development of robust supply chains to catalyse and support growth
in the electric vehicle sector and in other clean technologies.
“This Project further cements Mkango’s and
HyProMag’s early mover advantage in the rare earth magnet recycling
sector, highlighting its competitive position and strong network of
industry and academic partners.”
Nick Mann, Operations General Manager of
HyProMag stated: “As HyProMag moves forward in the
manufacturing of recycled magnets, the ability to demonstrate our
products in a range of applications with different demands is
crucial.
“We are delighted to be working with such a
talented consortium, to deliver premium products engineered to the
highest standards and in doing so forge future relationships. This
Project will push our magnet making to new levels and prove our
ability to offer an alternative to current supply routes.”
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.
HyProMag and the HPMS
technology
The patented HPMS process for extracting and
demagnetising NdFeB alloy powders from magnets embedded in scrap
and redundant equipment was originally developed within the
Magnetic Materials Group at the UoB and subsequently licenced to
HyProMag. The development of chemical processing of both recycled
HPMS NdFeB powder and magnet swarf by Mkango UK complements the
short loop HPMS process being scaled up by HyProMag, broadening the
range of material that can be processed, including scrap that is
not suitable for short loop magnet recycling.
The SCREAM Project
The objective of the SCREAM project is to
establish a recycled source of permanent magnets in the UK that
will provide greater security in the supply of these materials to
the UK, whilst aiming to achieve a 10% reduction in cost and a
significant reduction in the environmental impact of these
materials. Short loop magnet recycling is expected to have a
significant environmental benefit, requiring an estimated 88% less
energy versus primary mining to separation to metal alloy to magnet
production.
NdFeB magnets will be recovered from end of life
automotive, robotic, separator and loudspeaker scrap streams using
an automated sorting line and HPMS. The extracted HPMS powders will
be processed directly from the alloys into sintered magnets on a
newly installed production line at the Tyseley Energy Park in
Birmingham or converted into strip cast alloys for blending or
chemical processing by Mkango UK.
HyProMag will scale up this process to develop
magnets that are different grades for a range of applications.
The recycled magnets will be independently
qualified for magnetic, corrosion and mechanical performance and
then tested in a variety of applications including loudspeakers,
retaining clips, a magnetic separator and an automotive drive
motor.
About HyProMag
The Magnetic Materials Group (“MMG”) 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. 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 and
UoB 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 UoB 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 UoB Advanced Electric Machines Research Limited, Bentley
Motors Limited, Intelligent Lifecycle Solutions Limited and Unipart
Powertrain Applications Limited.
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.
In November 2021, HyProMag established a
subsidiary in Germany, HyProMag GmbH, to rollout commercialisation
of HPMS technology into Germany and Europe, and to further support
Government initiatives to strengthen European rare earth supply
chains and accelerate the green transition. HyProMag GmbH, is 80%
owned by HyProMag Limited and 20% owned by Professor Carlo
Burkhardt of Pforzheim University in Germany, co-ordinator of the
abovementioned SusMagPro project.
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, 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 nearing completion. 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 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 holds a 42%
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 exploration
project, 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. 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 |
|
|
|
BlytheRay |
|
Financial Public Relations |
|
Tim Blythe |
|
UK: +44 207 138 3204 |
|
|
|
SP Angel Corporate Finance LLP |
|
Nominated Adviser and Joint Broker |
|
Jeff Keating, Caroline Rowe |
|
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.
Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Apr 2023 to Apr 2024