TIDMMKA
RNS Number : 1382O
Mkango Resources Limited
27 May 2020
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO ANNOUNCES LAUNCH OF INNOVATIVE PROJECT TO USE RECYCLED
RARE EARTH MAGNETS IN ELECTRIC VEHICLES
London / Vancouver: May 27 , 2020 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
the launch and provide further details of the Innovate UK grant
funded project, "Rare-Earth Recycling for E-Machines" ("RaRE" or
the "Project") in which HyProMag Limited ("HyProMag") is a partner.
Mkango's subsidiary, Maginito Limited ("Maginito"), holds a 25%
equity interest in HyProMag.
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 .
Fundamental to the Project is a patented process for extracting
and demagnetising neodymium iron boron ("NdFeB") alloy powders from
magnets embedded in scrap and redundant equipment named HPMS
(Hydrogen Processing of Magnet Scrap), originally developed within
the Magnetic Materials Group ("MMG") at the University of
Birmingham ("UoB") and subsequently licenced to HyProMag. In
addition to HyProMag and UoB, the Project features a strong set of
partners with complementary expertise:
-- Advanced Electric Machines Research Limited - extensive
experience in designing motors for customers including Airbus and
Tevva Motors
-- Bentley Motors Limited - an iconic automotive brand and part
of the VW Group, one of the world's largest car manufacturers
-- Intelligent Lifecycle Solutions Limited - a global leader in
the processing of electronics waste working with Fortune 500
companies and UK government agencies
-- Unipart Powertrain Applications Limited - one of the largest
UK based Tier 1 automotive partners and a recognised volume
automotive supplier able to supply globally
The total budget for RaRE is GBP2.6 million, of which Innovate
UK will fund GBP1.9 million with Project partners funding the
GBP0.7 million balance. HyProMag's contribution will be fully
funded from the GBP300,000 investment made by Maginito in January
2020.
William Dawes, Chief Executive of Mkango stated: "We are very
excited about this innovative project and the opportunity to scale
up and commercialise the HPMS technology. We envisage that
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.
Further building on our platform within the circular economy and
downstream markets is a key component of our strategy, underpinned
by the sustainable development of the Songwe Hill rare earths
project in Malawi . "
Daniel Mamadou, Executive Director of Talaxis stated: "We are
excited to see this project progress to its next phase and welcome
the support of all partners involved. With the increasing need for
sustainably sourced commodities, RaRE highlights the role that
closed loops chains can play in rare earths supply, to meet the
environmental and economic demands of the growing electric vehicle
market. As an early participant in this project, we look forward to
continuing to support the development of the rare earth recycling
industry going forward, in parallel with the Songwe Hill rare
earths project in Malawi."
Nick Mann, Operations General Manager of HyProMag stated: "RaRE
is an exciting project and a fantastic opportunity to prove the
importance and worth of short loop recycled magnetic material.
NdFeB magnets are essential for many future technologies, and the
emerging electric vehicle market is of increasing importance. Being
involved at this level means we not only get to work with and
supply recycled magnets to some of the most innovative and globally
recognised companies, but also allows us to influence the design of
products with the aim of making recycling a better option in the
future. I believe this is industry, technology, recycling and
innovation working together at its impressive best."
RaRE Project
Building on work completed at the UoB to devise a method to
extract magnets from waste electronics, HyProMag will scale up the
HPMS process and re-process the product back into new magnetic
materials at pilot scale to demonstrate the quality of material
which can be produced in terms of its magnetic behaviour,
mechanical performance and corrosion resistance, all of which are
key to the end user application. Intelligent Lifecycle Solutions
will establish the scrap sorting process to maximise process
efficiency and rare earth material volumes.
The recycled magnets will be built into an ancillary electric
motor designed by Advanced Electric Machines Research to a Bentley
Motors specification and focused on reducing the overall complexity
of electrical systems in electric vehicles and designed with
recycling in mind. This will be the first time that such a recycled
motor will have been demonstrated. Unipart will take this motor
design and use it as the core focus for the design of a flexible
volume motor assembly line suitable for production volumes of
100,000 units per year.
Innovate UK will fund GBP1.9 million of the GBP2.6 million total
Project costs with the balance funded by the Project partners. In
the case of HyProMag, Innovate UK will contribute GBP657,717 and
HyProMag will contribute GBP281,879. HyProMag's contribution will
be fully funded from the investment by Maginito in HyProMag
announced on January 10, 2020, whereby Maginito invested GBP300,000
for a 25% equity interest in HyProMag and provided a GBP200,000
convertible loan facility, now fully drawn.
Maginito has an option to increase its interest to up to 49% in
HyProMag and the first right to supply primary production from
Songwe Hill, if required, for blending with recycled production
from HyProMag, as well as product offtake and marketing rights.
Maginito is 75.5% owned by Mkango, which is completing a
Feasibility Study for the Songwe Hill rare earths project in
Malawi, and 24.5% owned by Talaxis Limited ("Talaxis"), a
wholly-owned subsidiary of Noble Group Holdings Limited ("Noble"),
which is focused on investment in and development of technology
metal opportunities.
About HyProMag
The Magnetic Materials Group within the School of Metallurgy 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'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/
About Mkango
M kang o 's pri mary busin e ss is explorat i on for rare earth
ele me n ts and associat ed min erals in the Re public of Malawi, a
country whose hospitable people have earned it a reputation as "the
warm heart of Africa". The Company holds interests in four e
xclusive prosp ecting lice n s es in Malawi: the Phalombe licence,
the Thambani licence, the Chimimbe Hill licence and the Mchinji
licence.
The main exploration target in the 51% held Phalombe licence is
the Songwe Hill rare earths deposit. This features
carbonatite-hosted rare earth mineralisation and was subject to
previous exploration in the late 1980s. Mkango completed an updated
Pre-Feasibility Study for the project in November 2015 and a
Feasibility Study is currently underway, the initial phases of
which included a 10,900 metre drilling programme and an updated
mineral resource estimate, announced in February 2019. In March
2019, the Company announced receipt of a GBP7 million (C$12.3
million) investment from Talaxis to fund completion of the
Feasibility Study. Following completion of the Feasibility Study,
Talaxis has an option to acquire a further 26% interest in Songwe
by arranging financing for project development including funding
the equity component thereof.
The main exploration targets in Mkango's remaining three 100%
held licences are, in the Thambani licence, uranium, niobium,
tantalum and zircon, in the Chimimbe Hill licence, nickel and
cobalt, and in the Mchinji licence, rutile, nickel, cobalt, base
metals and graphite.
Mkango also holds a 75.5% interest in Maginito with the balance
owned by Talaxis. Maginito is focused on downstream opportunities
relating to the rare earths supply chain, in particular, recycling
and other innovative technologies for the production of neodymium
alloy powders and magnets used in electric vehicles, wind turbines
and other industries geared to decarbonisation of the economy.
For more information, please visit www.mkango.ca .
About Talaxis
Founded in 2016, Talaxis is a wholly-owned subsidiary of Noble
Group Holdings Limited and invests in and develops projects that
are related to technology metals, with a special focus on rare
earth elements. Talaxis focuses on battery and electric vehicle
materials such as nickel, lithium, graphite and vanadium. Talaxis
has supply chain partners in the upstream and midstream segments,
and also focuses on research and development solutions for
industrial consumers in the downstream segment. Talaxis prioritises
sustainable ventures with a strong emphasis on corporate social
responsibility. These include projects that contribute to the
decarbonisation of the economy and that are aligned with the United
Nations Sustainable Development Goals.
For more information, please visit www.talaxis.com.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
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 and the Project. 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 statements with
respect to the global market for rare earth metals the Company is
exploring for, completion of the feasibility study for Songwe,
investments by Maginito in Hypromag contemplated in the agreement
between Maginito and HyProMag and of the plans and results with
respect to the Project, as well as plans for Tyseley and first
commercial sales from Tyseley. 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 for the metals and associated downstream
products for which Mkango is exploring, researching and developing,
the positive results of a feasibility study on the Project and
delays in obtaining financing or governmental or stock exchange
approvals. 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
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall
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, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001
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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END
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