REG - Mkango Resources Ltd - HYPROMAG'S TECHNOLOGY SELECTED AS A MSP PROJECT

Mkango ResourcesAnnouncement

11/10/2023 15:45

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RNS Number : 8286P  Mkango Resources Limited  11 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

 

 

 

HYPROMAG'S RARE EARTH MAGNET RECYCLING TECHNOLOGY SELECTED

AS A MINERALS SECURITY PARTNERSHIP PROJECT

 

 

London / Vancouver: October 11, 2023 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") and CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") are
pleased to announce that HyProMag Ltd's ("HyProMag") rare earth magnet
recycling technology has been selected by the Minerals Security Partnership
("MSP") for support as one of its key projects. The technology was selected by
the MSP because the MSP determined its strong potential to contribute towards
the development of responsible critical mineral supply chains.

The MSP was formed in 2022 by 14 governments and aims to ensure adequate
supplies of minerals such as rare earths to meet net zero-carbon goals. It
aims to support public and private sector investments building diverse,
secure, and responsible global critical minerals supply chains.

Partner governments includes the United Kingdom, the United States, Australia,
Canada, Finland, France, Germany, Japan, India, the Republic of Korea, Norway,
Sweden and the European Union.

The MSP promotes responsible growth across the critical minerals sector via a
shared commitment to high environmental, social, and governance ("ESG")
standards, sustainability and shared prosperity. The MSP partner governments
regard the further development of responsible and resilient supply chains to
be critically important for an equitable and sustainable energy transition.

As MSP announced today, the MSP is committed to leveraging the collective
financial and diplomatic resources of its 14 partners by deepening
collaboration between governments, project developers and investors to drive
responsible investment in critical minerals projects.

HyProMag utilises hydrogen to recycle rare earth magnets vital for the global
energy transition by liberating them from end-of-life scrap.

MSP UK Government announcement
(https://www.gov.uk/government/news/uk-to-host-minerals-security-partnership-for-first-time-to-boost-investment-in-critical-minerals)

Julian Treger, CoTec CEO commented: "This exciting development is a strong
validation of HyProMag's REE recycling technology and further demonstrates its
attractiveness and potential, both from a strategic and commercial
perspective."

"CoTec's strategy is to align its technologies and assets with the UN
Sustainable Development Goals and its involvement with HyProMag is just one
example of how we strive to achieve this goal. CoTec and Mkango are looking
forward to working with the MSP to expedite the roll out of the technology.
The MSP provides a key platform from which strategically aligned governments
and companies can commercialise new proven technologies as part of the energy
transition towards a low carbon and sustainable future".

Will Dawes, Mkango CEO commented; "HyProMag is one of only 17 projects
selected across the entire critical minerals sector to receive support from
the MSP.

"We see this as a significant endorsement of the technology, which can make a
substantial impact in unlocking the supply chain for rare earth magnet
recycling from end-of-life products and enabling the production of rare earth
alloys and magnets with a significantly reduced carbon footprint."

HyProMag

HyProMag Ltd is commercialising rare earth magnet recycling using Hydrogen
Processing of Magnet Scrap (HPMS) technology, which can liberate and recycle
magnets from end-of-life scrap.

 

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
(https://hypromag.com/wp-content/uploads/2023/09/HyProMag-Corporate-Introduction-28-July-2023.pdf)

Having commissioned the UK's first rare earth magnet recycling pilot plant at
the University of Birmingham in 2022, alongside the UK's only facility to make
sintered rare earth magnets, HyProMag, together with the University of
Birmingham, are developing a large-scale recycling plant at Tyseley Energy
Park, Birmingham, with first production by the end of this year and supported
with funding from UK Research and Innovation. Investment from Mkango Resources
in 2020 helped scale-up and catalyse international growth initiatives,
including in Germany, where HyProMag has established a sister company,
HyProMag GmbH, and in the U.S. through a new Maginito-CoTec 50:50 joint
venture company, with evaluation of other jurisdictions underway. Maginito
(79.4% Mkango; 20.6% CoTec) acquired HyProMag in 2023.

 

In line with MSP's commitment to recycling and reuse, the development of new
sources of recycled rare earths can accelerate development of sustainable and
competitive rare earth magnet production.

 

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 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 producer
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.

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 (http://www.mkango.ca)

About CoTec Holdings Corp.

CoTec is a publicly traded investment issuer listed on the TSX Venture
Exchange and the OTCQB and trades under the symbol CTH and CTHCF respectively.
The Company is focused on investing in innovative technologies which 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 (http://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, Mkango 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, Mkango 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, 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 Mkango or CoTec in the
United States. The securities of Mkango and CoTec 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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