REG - Mkango Resources Ltd - COTEC & MKA APPOINT LEAD ENGINEERS PEGASUSTSI &BBA

Mkango ResourcesAnnouncement

22/04/2025 07:00

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RNS Number : 5600F  Mkango Resources Limited  22 April 2025

 

 

 

 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

 

 

COTEC AND MKANGO APPOINT LEAD ENGINEERS PEGASUSTSI AND BBA

TO PERFORM ENGINEERING, PROCUREMENT AND CONSTRUCTION MANAGEMENT (EPCM)
SERVICES FOR HYPROMAG USA TO PRODUCE RARE EARTH MAGNETS IN THE U.S.

 

London / Vancouver: April 22, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce that U.S.-based PegasusTSI Inc. ("PegasusTSI") and
Canada-based BBA USA Inc. ("BBA") have been engaged to complete the HyProMag
USA, LLC ("HyProMag USA") engineering, procurement and construction management
("EPCM") services for HyProMag USA's advanced stage rare earth magnet
recycling and manufacturing project located in Dallas-Fort Worth, Texas (the
"DFW Hub"). The award of the EPCM contract follows the November 2024
completion of the base case Feasibility Study for HyProMag USA i  (#_edn1)
("Feasibility Study"), which indicated a NPV(7%) of US$262 million based on
current market prices and US$503 million based on forecast prices.

The project will be executed over a 24-month period with the work being
undertaken from the PegasusTSI Tampa office, supported by an owner's team
comprised of HyProMag Limited, CoTec and Mkango.

First revenue is targeted in H1 2027 following a Notice to Proceed ("NTP")
expected in H2 2025 following completion of the detailed engineering design
and value engineering phase. HyProMag USA is initially targeting to supply 10%
of U.S. domestic demand ii  (#_edn2) for NdFeB magnets within five years of
commissioning the first DFW Hub.

Julian Treger, CoTec CEO commented: "The EPCM represents a significant
milestone towards the construction of commercial-scale magnet recycling and
production facilities, reshoring U.S. manufacturing capability and reducing
dependence on foreign magnets and rare earths. Following the competitive bid
process, we are looking forward to continuing to work closely with BBA and
PegasusTSI to develop these facilities. As HyProMag USA progresses it will be
working and collaborating with local, state and federal stakeholders. HyProMag
USA is supported by the Minerals Security Partnership, iii  (#_edn3) which
aims to accelerate the development of diverse critical minerals supply chains
in cooperation with industry and other governments to support strategic
projects."

Will Dawes, Mkango CEO commented: "We are very excited to see HyProMag USA's
groundbreaking rare earth magnet recycling and manufacturing project proceed
to the next stage of development. This project will make a major contribution
to the creation of a more robust rare earth supply chain and a strong platform
for further expansion in North America, complementing the ongoing HyProMag
developments in the UK and Germany.

The detailed engineering design and value engineering phase will include the
completion of sufficient engineering design works to support development of
the AACE Class 2 capital cost estimate to update what was outlined in the
Feasibility Study. This will also support the final site selection efforts
which are to be completed in H1 2025 and allow the commencement of site
permitting in line with the initial project schedule. Environment and
permitting studies will be supported by U.S.-based Weston Solutions, Inc.

During this phase and prior to the NTP, HyProMag USA will aim to secure
commercial arrangements with potential feed supply and product off-takers to
meet ongoing financing obligations. Discussions with federal, state and
municipal governments continue to progress. HyProMag USA has the potential to
supply the United States with sustainable, long term domestic supply of
neodymium/iron/boron (NdFeB) permanent magnets to enable the creation of
secure, low carbon and traceable rare-earth supply chains.

The Feasibility Study includes the DFW Hub, and two pre-processing facilities
located in South Carolina and Nevada respectively. In March 2025, HyProMag USA
announced the expansion of the detailed engineering phase to include three
HPMS vessels iv  (#_edn4) and that it was initiating concept studies for
further expansion and complementary "Long Loop" recycling v  (#_edn5) . The
DFW Hub's annual production is expected to be 750 metric tons per annum of
recycled sintered NdFeB magnets and 807 metric tons per annum of associated
NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within
five years of commissioning) over a 40-year operating life. It is expected the
production facility will provide significant optionality to supply the U.S.
market with additional NdFeB alloy powder while assisting in revitalising the
U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing
jobs.

Also in March 2025, HyProMag USA announced the results of an independent
ISO-Compliant product carbon footprint study which confirmed an exceptionally
low CO(2) footprint of 2.35 kg CO(2) eq. per kg of NdFeB cut sintered block
product. vi  (#_edn6)

Ownership

HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is
100 per cent owned by Maginito Limited ("Maginito"), which is owned on a
79.4/20.6 per cent basis by Mkango and CoTec.

About HyProMag

HyProMag is commercializing Hydrogen Processing of Magnet Scrap (HPMS)
recycling technology in the UK, Germany and the United States. HPMS technology
was developed at the Magnetic Materials Group (MMG) at 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 this solution.

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 symbols CTH and
CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource
extraction company committed to revolutionizing the global metals and minerals
industry through innovative, environmentally sustainable technologies and
strategic asset acquisitions. With a mission to drive the sector toward a
low-carbon future, CoTec employs a dual approach: investing in disruptive
mineral extraction technologies that enhance efficiency and sustainability
while applying these technologies to undervalued mining assets to unlock their
full potential. By focusing on recycling, waste mining, and scalable
solutions, the Company accelerates the production of critical minerals,
shortens development timelines, and reduces environmental impact. CoTec's
strategic model delivers low capital requirements, rapid revenue generation,
and high barriers to entry, positioning it as a leading mid-tier disruptor in
the commodities sector.

For more information, please visit www.cotec.ca.

 

About Mkango Resources Ltd.

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 in Malawi
and the Pulawy rare earths separation project in Poland. The Pulawy rare
earths separation project has been selected as a Strategic Project under the
European Union Critical Raw Materials Act. Mkango has signed a letter of
Intent with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy
rare earths projects on NASDAQ via a SPAC Merger.

For more information, please visit 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 and CoTec.
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 Songwe Hill, the Recycling Plants being developed by Maginito in the
UK, Germany and the United States (the "Maginito Recycling Plants"),
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 Maginito
Recycling Plants, and 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 press 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 because 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 CoTec, please contract:

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

braam.jonker@cotec.ca

+1 604 992-5600

 

For further information on Mkango, please contact:

 

Mkango Resources Limited

William Dawes                                Alexander Lemon

Chief Executive Officer                  President

will@mkango.ca                             alex@mkango.ca

+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.

 i  (#_ednref1)
https://www.cotec.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of-recycled-rare-earths-magnets-for-the-united-states

 ii  (#_ednref2) Federal Register: 88 FR 9430, Pages 9430-9475 (46 pages).
Department of Commerce, Bureau of Industry and Security: "The Effect of
Imports of Neodymium-Iron-Boron (NdFeB) Permanent Magnets on the National
Security."

 iii  (#_ednref3)
https://www.state.gov/joint-statement-on-the-minerals-security-partnership-announce-support-for-mining-processing-and-recycling-projects/.

 iv  (#_ednref4)
https://cotec.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further-expansion-and-complementary-long-loop-recycling

 v  (#_ednref5) Conventional leach, extraction purification and precipitation
process

 vi  (#_ednref6)
https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-block
(https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-block)

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