REG - Mkango Resources Ltd - CONSTRUCTION UPDATE UK MAGNET RECYCLING AT TYSELEY

Mkango ResourcesAnnouncement

06/03/2025 07:00

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RNS Number : 5378Z  Mkango Resources Limited  06 March 2025

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

MKANGO PROVIDES CONSTRUCTION UPDATE ON UK MAGNET RECYCLING AND MANUFACTURING
FACILITY AT TYSELEY ENERGY PARK, WELCOMES UK GOVERNMENT SITE VISIT

London / Vancouver: March 6, 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA) is
pleased to provide an update on the progress of the rare earth magnet
recycling and manufacturing facility currently being constructed at Tyseley
Energy Park, UK. Developed by the University of Birmingham and in partnership
with Mkango's subsidiary, HyProMag Limited ("HyProMag"), the facility is set
to strengthen the UK's domestic supply chain for rare earth magnets by
integrating innovative recycling technologies with new magnet production.

Last month, representatives from the UK's Department for Business and Trade
("DBT") and the Office for Investment visited the site, highlighting continued
government support for HyProMag's mission to establish a UK-based, sustainable
rare earth magnet recycling and manufacturing facility.

Significant progress has been made at the Tyseley facility over the last three
months.

Key updates include:

- Initial commercial production is targeted to commence by the end of Q2 2025,
subject to completion of the required infrastructure.

- Magnet alignment presses are now fully commissioned, and the powder
processing plant has been constructed.

- Infrastructure development is progressing, with data, battery, and
electrical rooms completed and electrical and gas pipe installation works
advancing well.

- The factory acceptance test for the Hydrogen Processing Magnet Scrap
("HPMS") vessel is taking place this week, with shipment to the UK from
Germany expected by the end of the month.

- Ongoing HPMS pilot production continues to enable early product deliveries
to customers ahead of full-scale production and this is to be scaled up in
parallel with commissioning of the commercial plant at Tyseley.

Ivan Lima, Investment Lead for Critical Minerals at DBT, commented: "A great
visit to Birmingham by the DBT Critical Minerals team and Office for
Investment to see the magnet recycling pilot plant at the University of
Birmingham. We also visited Tyseley Energy Park to see progress on the
scaled-up plant. Amazing work being done in this groundbreaking technology!
Thanks especially to Prof. Allan Walton, Nick Mann, and William Dawes for
making us feel so welcome"

William Dawes, CEO of Mkango Resources, commented: "We are pleased with the
progress at Tyseley, where we are integrating both new magnet manufacturing
and sustainable recycling technologies in collaboration with the University of
Birmingham. This facility will play a critical role in strengthening the UK's
rare earth magnet supply chain and supporting the country's clean energy
transition. The visit from representatives of the DBT and Office for
Investment reaffirmed the importance of this project in driving forward the
UK's advanced manufacturing and critical minerals strategy."

Allan Walton, Head of the Magnetic Materials Group at the University of
Birmingham and Founding Director of HyProMag, commented: "The progress at
Tyseley is a testament to the strong collaboration between academia and
industry, driving forward cutting-edge solutions for rare earth magnet
recycling and manufacturing. The integration of HPMS technology into a
commercial-scale facility is a significant step towards a more sustainable and
secure supply chain for critical materials in the UK. We are proud to be
working alongside Mkango and HyProMag to pioneer this groundbreaking approach,
reducing environmental impact while reinforcing the UK's leadership in
advanced magnet technology.

The HPMS process enables efficient recovery of rare earth magnets from
end-of-life components. Extracted alloy powder is purified and can be directly
converted into new magnets or fed into different parts of the global supply
chain:

 

·    Short Loop Recycling: Direct remanufacturing into new magnets
(developed by the University of Birmingham).

·    Medium Loop Recycling: Re-melting into new alloys.

·    Long Loop Recycling: Chemical separation for refining into oxides and
metals.

 

HyProMag holds exclusive rights to HPMS technology, supported by expertise
from the University of Birmingham's Magnetic Materials Group (MMG). The
technology is also being commercialised internationally, with sister companies
in the USA and Germany.

 

 

   Figure 1: New HPMS reactor

                                           Figure 2: Gas lines being installed at Tyseley Energy Park

 

 Figure 2: Gas lines being installed at Tyseley Energy Park

 

 

 

 

 

 

 

 

 

 

 

Figure 3: DBT, Office for Investment, University of Birmingham, HyProMag and
Mkango site visit

 

About Mkango

Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to
become a market leader in the production of recycled rare earth magnets,
alloys and oxides, through its interest in Maginito Limited ("Maginito"),
which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to
develop new sustainable sources of neodymium, praseodymium, dysprosium and
terbium to supply accelerating demand from electric vehicles, wind turbines
and other clean energy 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, respectively, and a 100 per cent interest in Mkango Rare Earths UK
Ltd ("Mkango UK"), focused on long loop rare earth magnet recycling in the UK
via a chemical route.

Maginito and CoTec are also rolling out HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA LLC joint venture company.

Mkango also owns the advanced stage Songwe Hill rare earths project and an
extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt
exploration portfolio in Malawi, and the Pulawy rare earths separation project
in Poland.

Songwe Hill is one of the few rare earths projects to have progressed to the
Definitive Feasibility Stage, with an expected life of mine of 18 years,
producing a 55% mixed rare earth carbonate, yielding 1,953 tons per annum of
NdPr and 56 tons per annum of DyTb.

Mkango's proposed Pulawy separation facility site, located in a Special
Economic Zone in Poland, stands adjacent to the EU's second largest
manufacturer of nitrogen fertilisers, and features established infrastructure,
access to reagents and utilities on site.

Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list
Mkango's Songwe Hill and Pulawy Rare Earths Projects on NASDAQ via a SPAC
Merger.

 

For more information, please visit www.mkango.ca (http://www.mkango.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. Generally,
forward looking statements can be identified by the use of words such as
"targeted", "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, receipt of TSX-V approval for the Subscription, the
availability of (or delays in obtaining) financing to develop Songwe Hill, and
the various recycling plants in the UK, Germany and the US as well as the
separation plant in Poland, 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 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 various recycling and separation plants of Mkango and Maginito and
future investments in the United States pursuant to the 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 disclaims
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
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 (http://www.mkango.ca)

@MkangoResources

 

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Jen Clarke, Devik Mehta

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.

 

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