REG - Mkango Resources Ltd - HYPROMAG ACHIEVES FURTHER TECHNICAL MILESTONES

Mkango ResourcesAnnouncement

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RNS Number : 9583M  Mkango Resources Limited  16 June 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

 

 

HYPROMAG ACHIEVES FURTHER TECHNICAL MILESTONES AS PILOTING RAMPS UP IN ADVANCE
OF COMMERCIAL RARE EARTH MAGNET PRODUCTION IN THE UK, GERMANY AND USA

 

London / Vancouver: June 16, 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") and CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") are
pleased to provide a technical update for HyProMag Limited ("HyProMag") and
its ongoing advanced pilot programme for the scale-up and roll out of Hydrogen
Processing of Magnet Scrap ("HPMS") technology to produce domestically sourced
and short-loop recycled rare earth magnets with a minimal carbon footprint in
the UK (2025), Germany (2025) and United States (2027).

The ongoing advanced pilot programme at the University of Birmingham is
proceeding in parallel with development of the commercial scale plant at
Tyseley Energy Park in Birmingham, UK.

HPMS technology was developed by the Magnetic Materials Group at the
University of Birmingham ("UoB"), underpinned by approximately US$100 million
of research and development funding. HPMS has major competitive advantages
over other rare earth magnet recycling technologies, which are largely focused
on chemical processes but do not solve the challenges of extracting magnets
from end-of-life scrap streams and only produce rare earth oxides or mixed
rare earth carbonates, which require further processing. HyProMag provides the
solution, producing a value-added, magnet product for direct sale to domestic
customers across multiple jurisdictions.

Over the course of the previous 12 months, HyProMag has made significant
technical progress to support its efforts in optimising design criteria,
processing different NdFeB scrap feed materials and producing recycled, low
carbon, commercial, magnets of different technical grades. To date, the
University of Birmingham Pilot plant has produced over 3,500 magnets of
commercial grade from various waste streams. Sample magnets have been provided
to commercial partners for extensive testing and product verification and will
support continued off taker due diligence over the coming 12 months for the
UK, Germany and U.S. businesses.

Recent progress and technical milestones for HyProMag include the following:

·    Further optimisation of HPMS for different NdFeB scrap sources - HPMS
continues to demonstrate very effective removal and recycling of magnets from
electric motor rotors, where they are embedded in laminated stacks of
transformer steel. HyProMag is engaging with multiple parties in this sector
to provide pre-processing and recycling solutions, as well as in other sectors
such as e-bikes, medical devices and professional audio units.

·    Hard disk drive (HDD) magnets continue to be an important feedstock
for HyProMag with HPMS now succesfully demonstrated on at least 18 different
morphologies of HDDs and commercial grade N45M and N42M magnets produced from
the liberated HPMS powder. These and other magnets produced via HPMS from
other scrap sources, ranging in grade from N48 remanence and UH coercivity,
are currently being tested in a wide range of applications, including
automotive, audio and others.

·    In collaboration with ZF Automotive and UoB, HyProMag has recently
supplied magnets for prototype testing in automotive ancillary applications
which were successfully tested by ZF, with performance nearly identical to
magnets made from virgin materials as indicated in the recent press article:
https://www.engineerlive.com/content/recycling-and-reusing-motor-magnets
(https://www.engineerlive.com/content/recycling-and-reusing-motor-magnets) .

·    As a key partner in the Securing Critical Rare Earth Materials
("SCREAM") project, GKN Automotive was instrumental in delivering simulation
and physical testing to verify that the HyProMag magnets produced via
short-loop recycling have equivalent performance to primary magnets of the
same grade.

·    The first production-ready HDD magnet separation system has been
built by INSERMA ANOIA SL ("Inserma") i  (#_edn1) and is expected to be
delivered to the UK in Q3. The system has been shown to more accurately
identify and remove the magnets from HDD for HPMS processing at scale. The
addition of a printed circuit board removal module is at an advanced stage of
development, which would be transformational for the process and enhances the
Information Security requirements of HDD Recycling.

·    Increased magnetic performance has been achieved through further
optimisation of the HPMS and magnet manufacturing processes, with positive
feedback from customers who are currently stress testing magnet prototypes.
Further technical details, including magnet grades and performance achieved,
are elaborated in a detailed HyProMag technical bulletin, which can be
accessed via the following link:
https://hypromag.com/executive-summary-of-recent-technical-progress-by-hypromag-ltd-june-2025
(https://hypromag.com/executive-summary-of-recent-technical-progress-by-hypromag-ltd-june-2025)

·    Magnets produced from HPMS generated alloys are the first sintered
NdFeB magnets to be produced in the UK since the closure of Philips in
Southport in December 2003. This capability for manufacture of sintered,
commercial grade magnets need not be confined to producing magnets directly
from scrap and can be further enhanced by blending with new cast alloys made
from virgin mine-sourced metals or recycled metals.

·    Acceleration of research and development (R&D) work on blending
recycled HPMS powders with virgin materials (from primary as well as medium
and long loop recycled sources) is underway, which will broaden the range to
higher magnet grades available for commercial purchase and aligns strongly
with incoming thresholds for minimum recycled content under the European Union
Critical Raw Materials Act.

·    Over 100 different blends of recycled material have been created in
the last six months to meet R&D and customer requirements, with magnets
derived from both single and blended batches of HPMS powder demonstrating
consistent performance and further validating the short-loop recycling and
magnet manufacturing process.

·    Whether in collaborative projects, such as SusMagPro and REEsilience
in Europe and UKRI (United Kingdom Research and Innovation) projects RaRE,
REAP, SCREAM, ReREwind and REEmelt, or through other collaborations,
HyProMag's development partners remain confident of its continuing progress.
A recent article has been published which has acknowledged the quality of
magnets produced for rotating machines:

https://www.engineerlive.com/content/recycling-and-reusing-motor-magnets
(https://www.engineerlive.com/content/recycling-and-reusing-motor-magnets) .

·    Rare earth magnets derived from HPMS will be extremely low in their
Product Carbon Footprint (PCF). For further details and breakdown see
https://mkango.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-2-sub-footprint-of-2.35-kg-co-sub/
(https://mkango.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-2-sub-footprint-of-2.35-kg-co-sub/)

Through the abovementioned workstreams, together with further optimisation and
development of blending and grain boundary technologies, HyProMag expects to
significantly expand the range of commercial grades produced as illustrated
below:

 

 

 

 

 

 

Will Dawes, Mkango CEO commented: "HyProMag is going from strength to strength
with the support of its excellent and growing team, as well as from the
University of Birmingham and its other partners. The company is well placed to
capitalise on the increasing demand for more robust supply chains and
sustainably sourced magnetic materials - technologies being commercialised by
HyProMag will be transformational for the sector, and we look forward to first
sales in UK and Germany in the coming months, as well as completion of
detailed engineering in the USA in advance of large-scale project
development."

Julian Treger, CoTec CEO commented: "We are very pleased with the continued
progress of HyProMag in advance of the commissioning of the UK and German
plants. The learnings from these plants and the University of Birmingham's
pilot plant programme represent a significant opportunity for HyProMag USA to
optimise and refine the detailed design phase. Furthermore, the production of
a wide range of magnet grades for U.S. customers from multiple scrap
feedstocks will support our financing and off take activities."

Nick Mann, HyProMag Limited MD commented: "The improvements on magnetic
properties made are down to the increased understanding gained by the
metallurgical team on how to process, blend and sinter differing input feed
stocks to achieve a consistent grade of magnet.  As we begin production at
Tyseley we are testing, collaborating and supplying our commercial partners
with our magnets against specifications and are demonstrating good alignment
with their products."

Sean Worrall, GKN Automotive Chief Engineer Product Sustainability commented:
"As the key physical testing and simulation partner, we are pleased to confirm
that the recycled magnets replicated expected performance exceptionally
closely during testing. This means HyProMag's short-cycled magnets can be
reliably used in motor design simulation to deliver real world performance.
The HPMS process enables a supply chain of sustainable, competitive,
rare-earth magnets, decoupled from the problems of the virgin material supply
chain"

2025 University of Birmingham (UoB) Accelerated Pilot Programme

In parallel with commissioning of the commercial plants in UK and Germany, and
to support ongoing HyProMag USA LLC ("HyProMag USA") detailed design ii 
(#_edn2) , HyProMag has further invested in piloting utilising the UoB
infrastructure, onboarded new production engineers and tripled the throughput
capacity of the UoB pilot vessel and associated processes. During a six-month
period, multiple sources of scrap feeds will be processed with a target of two
tonnes of HPMS power produced and converted into commercial grade magnets.
HyProMag will provide these samples to potential customers, as well as
targeting further improvements in the engineering design criteria, recoveries
and magnet making capability to support commercial developments in the UK,
Germany and U.S.

 

The main objectives of the 2025 UoB Accelerated Pilot Programme are to:

 

·    Provide NdFeB block and finished magnet samples to customers, to
support product marketing, offtake discussions and scale-up in Europe and
North America, and to complement HyProMag's 2025 commercial production of
NdFeB alloys, blocks and finished magnets derived from the commercial scale
plant being commissioned at Tyseley Energy Park (TEP) by the University of
Birmingham.

·    Enhanced QAQC planning - Commercial production at TEP is targeted at
600kg batches of HPMS powder that will be analysed by ICP-OE, XRF and gas
analysis. These characterised batches will be blended for targeted magnet
qualities based on the development know-how from piloting. These batches will
be large and consistent in quality; 1.2 tonnes of blended powder can, for
example, deliver 50,000 magnets based on a typical 25g speaker application.
Sampling QAQC procedures are being developed with end-users.

·    Further demonstrate and optimise HPMS, including pre-processing for
larger volumes and broader variety of scrap feeds to derive optimal process
conditions and estimates of recovery, NdFeB magnet content and yield to short
loop recycling for different scrap feeds

·    Complete further variability analysis across different HPMS batches
of the same type of scrap feed.

·    Further demonstrate the ability to blend HPMS powders from different
HPMS batches of the same scrap feed with or without virgin feed additions

The Accelerated Piloting Programme targets over 50 additional HPMS runs over a
six-month period covering principal scrap feeds containing: separated magnet
scrap, VCMs from different sources, pre-processed HDD feed, surface mounted
and embedded rotors from electric motors, MRI, wind turbine feed, speaker
assemblies and other forms of NdFeB scrap material provided by strategic
partners.

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
("Songwe") and the Pulawy rare earths separation project in Poland ("Pulawy").
Both the Songwe and Pulawy projects have been selected as Strategic Projects
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

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 HyProMag USA LLC.

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

For more information, please visit www.hypromagusa.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.

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 delivery and effectiveness of the HDD magnet separation
system built by Inserma, the results of the Accelerated Pilot Programme at
UoB, 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 US (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 Pulawy and future
investments in the United States pursuant to the proposed cooperation
agreement between Maginito and CoTec, 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 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 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

 

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.

 

 i 
https://mkango.ca/news/maginito-secures-exclusive-agreement-with-inserma-to-commercialise-automated-pre-processing-of-hard-disc-drives-loudspeakers/

 ii 
https://mkango.ca/news/cotec-and-mkango-appoint-lead-engineers-pegasustsi-and-bba-to-perform-engineering-procurement-and-construction-management-epcm/

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