REG - Mkango Resources Ltd - HYPROMAG AND MKANGO RARE EARTHS SECURE UK GRANT

Mkango ResourcesAnnouncement

03/10/2024 07:00

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RNS Number : 7330G  Mkango Resources Limited  03 October 2024

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

HYPROMAG AND MKANGO RARE EARTHS SECURE UK GOVERNMENT GRANT FUNDING

 

Highlights

·      HyProMag Ltd ("HyProMag") and Mkango Rare Earths UK Ltd ("Mkango
UK") have been awarded grants totalling £218,932 by Innovate UK to advance
their medium-loop (via remelting) and long-loop (via chemical processing) rare
earth magnet recycling routes - both underpinned by the patented Hydrogen
Processing of Magnet Scrap ("HPMS") technology developed at the University of
Birmingham for demagnetising and liberating end-of-life ("EoL") rare earth
magnets from scrap streams. HyProMag is the exclusive licencee of the HPMS
process.

·      These recycling routes are complementary to the short-loop rare
earth magnet recycling and manufacturing being commercialised by HyProMag in
the UK, Germany and the United States, and provide additional flexibility to
maximise value and minimise the carbon footprint for a broader variety of
NdFeB feeds including EoL sources and pre-production swarf.

·      In the REEmelt Project, HyProMag will collaborate with Less
Common Metals ("LCM"), ADEY Innovation Ltd ("ADEY") and the University of
Birmingham ("UoB") to liberate EoL rare earth magnets via HPMS, followed by
remelting, strip casting and remanufacture into a new sintered rare earth
magnet for demonstration in an ADEY magnetic filter.

·      In the Sustainable Alternative to Hydrometallurgical Processes
("SAHP") Project, Mkango UK will collaborate with Imperial College spin-out,
Nanomox Ltd ("Nanomox"), to validate its novel Oxidative Ionothermal Synthesis
("OIS®") process at pilot scale, which provides an opportunity to lower the
environmental impact and cost of long-loop chemical processing, leveraging off
the existing pilot facilities already developed by Mkango UK at Tyseley Energy
Park in Birmingham.

London / Vancouver: October 3, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
(the "Company" or "Mkango") is pleased to announce that HyProMag and Mkango UK
have been awarded grants totalling £218,932 as part of the  CLIMATES
(Circular critical materials supply chains) programme
(https://iuk.ktn-uk.org/programme/circular-critical-materials-supply-chains/)
, a £15 million investment delivered by Innovate UK, which aims to strengthen
the UK's supply chain resilience within critical minerals. Both HyProMag and
Mkango UK are 100% owned subsidiaries of Maginito Limited ("Maginito"), which
is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings ("CoTec").

Mike Biddle, Exec Director for Net Zero at Innovate UK, stated: "An electric
vehicle and many green technologies not only requires Cobalt, Lithium and
Graphite for the battery but also Rare Earth Elements for the high-performance
permanent magnets used in the electric motors. The innovative partnerships we
are funding will explore novel ways to support our supply of these Rare Earth
Elements in the UK and have enormous potential. Backing from Innovate UK will
accelerate their work towards commercialisation."

REEmelt

REEmelt is a £589,852 project focused on medium-loop rare earth magnet
recycling (via remelting) to produce NdFeB strip cast alloys for remanufacture
back into sintered rare earth magnets for demonstration in an ADEY magnetic
filter. ADEY developed the world's first magnetic filter device (The
MagnaClean®) and these are installed on over 10 million central heating
systems worldwide.

Recycled NdFeB liberated from scrap streams via the HPMS process will be
remelted and strip cast by LCM at its commercial operations in Ellesmere Port,
UK, to provide a feed for magnet making. The remelting process has the effect
of reducing impurities and enhancing the chemical composition, also allowing
the opportunity for additional blending. LCM has the equipment, technology and
expertise for remelting and alloy manufacture, with HyProMag and the
University of Birmingham focused on HPMS and magnet manufacture, and ADEY
focused on product demonstration. Medium-loop recycling via remelting is
complementary to short-loop and long-loop recycling also being developed by
UoB, HyProMag and Mkango UK, and progressing this additional capability gives
even more flexibility to process different scrap streams and provide tailored
recycling solutions with potential for greater recycling and recovery rates
across all applications.

Nick Mann, Managing Director of HyProMag stated: "We are very pleased to be
working with market leaders in their respective fields, enhancing
opportunities to add value and build relationships ahead of our targeted UK
commercialisation early next year. This project significantly enhances our
opportunities to process different scrap feed and to broaden the range of
potential products."

Aaron Riley, General Manager of Less Common Metals stated: "We are excited to
support an additional UK project focussed on advancing the circular economy
and building an alternative route for rare earth magnets. As part of the
Innovate UK-funded REEmelt project, LCM will collaborate with HyProMag Ltd,
ADEY Innovation Ltd, and the University of Birmingham to recycle and
remanufacture rare earth magnets from end-of-life sources. By utilising
Hydrogen Processing of Magnet Scrap (HPMS) technology, developed at the
University of Birmingham and exclusively licenced to HyProMag, rare earth
magnets will be liberated from scrap, remelted, and strip cast at our site in
Ellesmere Port in the Northwest of England.

This innovative process reduces impurities and enhances the chemical
composition of rare earth elements, allowing for tailored recycling solutions.
Collaboration is key and partnerships will enhance supply chain opportunities,
minimize carbon footprint, and maximize value from different scrap streams.
LCM looks forward to fostering key relationships through this project, which
complements existing short and long-loop recycling efforts and supports the
UK's push toward greater supply chain resilience in critical materials."

Helen Isherwood, Managing Director of ADEY Innovation Ltd stated: "We have
been working with HyProMag and Birmingham University for some time and have
been very impressed by their tenacity and commitment to resolving the
challenge of recycling rare earth magnets. We are delighted that they have
secured additional funding to further progress a project that has the
potential to provide a very practical solution to addressing carbon net zero
and supply chain challenges."

Prof David Brown, Industrial Professor of Magnetic Materials at the University
of Birmingham stated: "The University of Birmingham's Magnetics Materials
Group has been at the forefront of materials development, manufacturing
technologies and characterisation for over 50 years. Our experienced team and
bespoke suite of equipment and processing capabilities are ready to add value
and deliver the goals of the REEMelt project. In particular, the Group
operates specialised pilot-scale furnaces for alloying, strip-casting and
jet-casting kilogram-scale batches of complex alloys. The ability to control
the cast structure of rare earth based permanent magnet materials is
absolutely critical to their ultimate performance."

SAHP - OIS(R) as a Sustainable Alternative to Hydrometallurgical Processes

This is a £249,682 project focused on long-loop rare earth magnet recycling
(via a chemical route) to process NdFeB feeds from EoL sources and
pre-production swarf toproduce rare earth oxides and carbonates. The project
will test Nanomox's OIS® process at pilot scale, via integration with Mkango
UK's existing long-loop pilot facilities at Tyseley Energy Park in Birmingham,
and will enable completion of feasibility studies to fully evaluate the
process.

Nanomox has developed a novel and highly innovative synthetic manufacturing
process, termed OIS®, which can process polymetallic materials to selectively
extract and recover target metals allowing for more efficient recycling and
processing of industrial waste streams. OIS® uses green catalytic solvents
(ionic liquids) which facilitate processing in the absence of volatile and
hazardous chemicals. These ionic liquids can be recycled, lowering process
waste and associated processing costs.

Following the commissioning of its long-loop pilot plant in July 2024, Mkango
UK has been progressing process optimisation activities, scoping studies, and
evaluation of bolt-on technology enhancements, which will now include OIS®,
enabling the evaluation of different options for long-loop recycling on a
commercial basis.

Nielson Beddoe, Process Engineering Manager of Mkango UK stated: "We are very
excited to be working with Nanomox - this project is fully aligned with our
strategy to evaluate new technologies for integration with our long-loop
process, enhancing options for commercial development whilst developing
opportunities for lowering the carbon footprint, environmental impact and
operating costs."

Francisco Malaret, CEO and Co-founder at Nanomox, stated: "I am thrilled to
collaborate with experts in the REE space to expand the capabilities of our
OIS® process to critical minerals essential for advancing green technologies.
I believe ionic liquids will play a pivotal role in enabling sustainable REE
processing. On behalf of the Nanomox team, I'd like to thank our commercial
partners and the funding agency for this opportunity to explore new avenues
for innovation."

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, 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 UK, focused on
long loop rare earth magnet recycling in the UK via a chemical route.

Maginito and CoTec are also rolling out the HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA LLC joint venture company.
HyProMag is also evaluating other jurisdictions, and recently launched a
collaboration with Envipro on rare earth magnet recycling in Japan.

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.

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, the success of REEmelt and SAHP to achieve their aims and the
commercial application of the results, the availability of (or delays in
obtaining) financing to develop the various recycling plants in the UK,
Germany and the US, governmental action and other market effects on global
demand and pricing for the metals and associated downstream products for which
Mkango is researching and developing, 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 business of Maginito and separation business of 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 plants of
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 Maginito'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 (about%3Ablank)

@MkangoResources

 

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, 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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