TIDMMKA
RNS Number : 4836P
Mkango Resources Limited
10 October 2023
MKANGO RESOURCES LTD. COTEC HOLDINGS CORP.
550 Burrard Street 755 Burrard Street
Suite 2900 Suite 428
Vancouver Vancouver
BC V6C 0A3 V6Z 1X6
Canada Canada
MKANGO AND COTEC PROVIDE UPDATE ON ROLL-OUT OF HYPROMAG'S RARE
EARTH MAGNET RECYCLING TECHNOLOGY INTO THE UNITED STATES
London / Vancouver: October 10, 2023 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) ("Mkango") and CoTec Holdings Corp. (TSXV: CTH;
OTCQB: CTHCF) ("CoTec") are pleased to provide an update on the
roll-out of HyProMag's rare earth magnet recycling technology into
the United States. HyProMag Ltd ("HyProMag") is a wholly owned
subsidiary of Maginito Ltd ("Maginito"), which is 79.4% owned by
Mkango and 20.6% owned by CoTec.
Based on positive scoping studies to date, Maginito and CoTec
have commenced planning for the feasibility study for the United
States operation ("Feasibility Study"), targeted for completion by
mid-2024.
The proposed operating configuration for the United States
operations is a modular, hub and spoke model, with the initial
deployment of three Hydrogen Processing of Magnet Scrap (HPMS)
recycling vessels at the spokes and a central hub comprising of
rare earth (NdFeB) alloy and magnet manufacturing, subject to the
outcome of the Feasibility Study.
Operating scenarios tested through the scoping studies
highlighted:
-- A range of production scenarios and product suites are
potentially viable, including finished magnets, sintered blocks and
alloy products, and incorporating up to 100% recycled NdFeB
feed;
-- Potential for US$50 million per year of revenue generation,
based on assumed production of 500 tonnes per year of NdFeB magnets
and a blended product price of US$100/kg, which is within the range
of current pricing for the different products evaluated during the
scoping studies;
-- A target EBITDA margin of 35% to 40% would potentially be
achievable under a range of scenarios, with a minimum estimated
capital expenditure of US$30 million; and
-- Market conditions and rare earth prices are currently
subdued, indicating potential upside versus the current pricing
scenario as market conditions recover, in parallel with further
optimization of the development scope.
The actual results of the United States operations could vary
materially depending on future pricing of rare earth elements,
final product mix, agreed sales pricing for each product, capacity
at which the HPMS vessels and magnet manufacturing will be
operated, quality and cost of scrap feed material, primary product
ratio and other material inputs. These key inputs will be further
explored and optimized during the completion of the F easibility S
tudy .
The basis of design, product suite and operating parameters for
the United States operations will be further confirmed, refined and
de-risked as the recycling and magnet manufacturing facilities are
commissioned and production commences at Tyseley Energy Park
("Tyseley") in the United Kingdom. First production of rare earth
magnets from Tyseley is targeted for this year.
The Tyseley development is being funded by the UK Research and
Innovation "Driving the Electric Revolution" challenge. HyProMag is
the primary industrial user and operator of the plant, and the
principal licensee for the underlying HPMS technology from the
University of Birmingham.
The University of Birmingham has approved a sub-license of the
HPMS technology to the HyProMag US operations, allowing Maginito
and CoTec to proceed with the formation of a joint venture company.
The joint venture company, HyProMag US, will be 50% held each by
Maginito and CoTec, with CoTec responsible for funding all
feasibility and development costs.
Julian Treger, CoTec CEO commented; "We are very pleased with
the progress and the results of the scoping studies. HyProMag US
continues to benefit from front-end engineering and development of
the plants in the UK and Germany, which significantly de risks the
US operations."
"As the planning for the Feasibility Study commences with our
partner Mkango, CoTec is focused on the operational roll-out of the
HyProMag technology. HyProMag's exciting recycling technology
offers a long-term, sustainable and low carbon solution for the
supply of domestic REE magnets. Discussions with the US Government,
potential customers and recycling partners have commenced and are
ongoing ."
Will Dawes, Mkango CEO commented; "We are very excited about
opportunities for growth in the United States and look forward to
working with CoTec and HyProMag as we continue to scale-up and
roll-out the HPMS rare earth magnet recycling technology. HPMS has
potential to unlock the supply chain for rare earth magnet
recycling and it's fantastic to see this UK developed, homegrown,
innovative technology continuing to gain traction
internationally."
HPMS technology was developed at the University of Birmingham,
underpinned by approximately US$100 million of research and
development funding, and has major competitive advantages versus
other rare earth magnet recycling technologies, which are largely
focused on chemical processes but do not solve the challenges of
liberating magnets from end-of-life scrap streams - HPMS provides
the solution. HyProMag's company presentation can be viewed via the
following link: HyProMag Corporate Presentation
Maginito
Maginito is a UK based Company owned 79.4 per cent by Mkango and
20.6 per cent by CoTec. It is focused on 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 100 per cent interest in HyProMag and a 90 per
cent direct and indirect interest (assuming conversion of
Maginito's convertible loan) in HyProMag GmbH, focused on short
loop rare earth magnet recycling in the UK and Germany, and a 100
per cent interest in Mkango Rare Earths UK Ltd ("Mkango UK"), a
company focused on long loop rare earth magnet recycling in the UK
via a chemical route.
About Mkango Resources Ltd.
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 listed on the AIM and the TSX-V.
Mkango is developing its flagship Songwe Hill rare earths
project ("Songwe") in Malawi with a Definitive Feasibility Study
completed in July 2022 and an Environmental, Social and Health
Impact Assessment approved by the Government of Malawi in January
2023.
In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading
chemical have agreed to work together towards development of a rare
earth separation plant at Pulawy in Poland (the "Pulawy Separation
Plant") to process the purified mixed rare earth carbonate produced
at Songwe Hill.
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
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the
Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades
under the symbol CTH and CTHCF respectively. The Company is an
environment, social, and governance ("ESG")-focused company
investing in innovative technologies that have the potential to
fundamentally change the way metals and minerals can be extracted
and processed for the purpose of applying those technologies to
undervalued operating assets and recycling opportunities, as the
Company transitions into a mid-tier mineral resource producer.
CoTec is committed to supporting the transition to a lower
carbon future for the extraction industry, a sector on the cusp of
a green revolution as it embraces technology and innovation. The
Company has made four investments to date and is actively pursuing
operating opportunities where current technology investments could
be deployed.
For more information, please visit www.cotec.ca .
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.
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 and CoTec, including their plans to proceed with
the roll-out of HyProMag's rare earth magnet recycling technology
into the United States by way of a new joint venture and the
anticipated structure, costs and benefits of that joint venture.
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, the
availability of (or delays in obtaining) financing to develop
HyProMag US's operations, Songwe Hill, the Tyseley Recycling Plant,
the HyProMag GmbH Recycling Plant, the Mkango UK Pilot Plant, the
Pulawy Separation Plant, governmental action and other market
effects on global demand and pricing for the metals and associated
downstream products for which Mkango is exploring, researching and
developing, geological, technical and regulatory matters relating
to the development of Songwe Hill, the ability to scale the HPMS
and chemical recycling technologies to commercial scale,
competitors having greater financial capability and effective
competing technologies in the recycling and separation business of
Maginito and Mkango, availability of scrap supplies for Maginito's
recycling activities, government regulation (including the impact
of environmental and other regulations) on and the economics in
relation to recycling and the development of the Tyseley Recycling
Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot
Plant, the Pulawy Separation Plant and future investments in the
United States pursuant to the proposed cooperation agreement
between Maginito and CoTec, the outcome and timing of the
completion of the feasibility studies, cost overruns, complexities
in building and operating the plants, and the positive results of
feasibility studies on the various proposed aspects of Mkango's,
Maginito's and CoTec's activities. 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 and CoTec disclaim
any intention and assume 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 and CoTec undertake 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
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Kasia Brzozowska
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
Tavistock Communications
PR/IR Adviser
Jos Simson, Cath Drummond
UK: +44 (0) 20 7920 3150
mkango@tavistock.co.uk
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUKAAROSURRUA
(END) Dow Jones Newswires
October 10, 2023 02:00 ET (06:00 GMT)
Mkango Resources (LSE:MKA)
Historical Stock Chart
From Apr 2024 to May 2024
Mkango Resources (LSE:MKA)
Historical Stock Chart
From May 2023 to May 2024