REG - Mkango Resources Ltd - HYPROMAG TO PARTICIPATE IN INNOVATIVE PROJECT

Mkango ResourcesAnnouncement

12/09/2023 10:00

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RNS Number : 1692M  Mkango Resources Limited  12 September 2023

 

 

 

 

 

MKANGO RESOURCES
LTD.
 

550 Burrard
Street
 

Suite
2900
 
 

Vancouver
 
 

BC V6C
0A3
 
 

Canada
 
 

 

HYPROMAG TO PARTICIPATE IN INNOVATIVE PROJECT TO DEVELOP THE UK'S FIRST

CIRCULAR SUPPLY CHAIN FOR WIND TURBINE RARE EARTH MAGNETS

 

HIGHLIGHTS:

 

§ HyProMag to participate in grant funded project with European Metal
Recycling Limited (EMR), the Offshore Renewable Energy (ORE) Catapult,
Magnomatics and University of Birmingham

§ Re-RE Wind aims to establish the UK's first circular supply chain for rare
earth magnets used in wind turbines:

-      sustainable and safe decommissioning of wind turbine nacelles;

-      applications in a new custom-designed generator;

-      design for recycling; and

-      life cycle and technoeconomic assessment.

§ The first generation of wind turbines are now nearing their end-of-life,
and the Project aims to catalyse a low-carbon decommissioning programme,
unlocking a new domestic source of rare earths for the UK

§ The Project further cements HyProMag's position as the UK's leading rare
earth magnet recycler and underpins plans for scale-up of recycling and magnet
manufacturing in the UK

London / Vancouver: September 12, 2023 - Mkango Resources Ltd. (AIM/TSX-V:
MKA) (the "Company" or "Mkango") is pleased to announce that HyProMag Limited
("HyProMag") is collaborating with EMR, the Offshore Renewable Energy (ORE)
Catapult, Magnomatics and University of Birmingham in a £1.5 million project,
Re-RE Wind ("Re-RE Wind" or the "Project"), of which £1.0 million or 67% will
be funded by Innovate UK's circular critical materials supply chains
(CLIMATES) programme. The budget for HyProMag's portion of the Project is
circa £350,000 of which 70% will be funded by the grant. The grant is subject
to signature of a collaboration agreement between the parties.

William Dawes, Chief Executive of Mkango stated: "This Project further cements
Mkango's and HyProMag's early mover advantage in the rare earth magnet
recycling sector, highlighting its competitive position and strong network of
leading industry and academic partners. We look forward to continuing to
support HyProMag as it scales up HPMS (Hydrogen Processing of Magnet Scrap)
and rolls-out the technology internationally."

Nick Mann, Operations General Manager of HyProMag stated: "We are very
excited about this innovative project and the opportunity to further develop
the UK supply chain for rare earth magnet recycling with the support of
Innovate UK and an excellent consortium of project partners.

"Re-RE Wind  will address the hurdles for recycling of permanent magnets from
wind turbines, effectively unlocking a new domestic source of rare earths. It
further underpins the scale-up of HyProMag's operations in the UK, whilst
complementing other Innovate UK supported projects focused on different scrap
streams, such as electronic waste and electric vehicle motors, in which
HyProMag is participating."

In August this year, Mkango's 90% owned subsidiary, Maginito Limited
("Maginito"), completed the acquisition of HyProMag (www.hypromag.com), which
is commercialising rare earth magnet recycling in the UK, Germany (via
HyProMag GmbH), United States (in partnership with CoTec Holdings) and other
jurisdictions.

HyProMag's HPMS technology, is a homegrown, innovative technology developed at
the University of Birmingham, and has major competitive advantages versus
other rare 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-Introduction-28-July-2023.pdf
(https://hypromag.com/wp-content/uploads/2023/09/HyProMag-Corporate-Introduction-28-July-2023.pdf)

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 flagship 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. Malawi is known as "The Warm Heart of Africa", a
stable democracy with existing road, rail and power infrastructure, and new
infrastructure developments underway.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical company
and the second largest manufacturer of nitrogen and compound fertilizers in
the European Union, have agreed to work together towards development of a
rare earth separation plant at Pulawy in Poland (the "Pulawy Separation
Plant"). The Pulawy Separation Plant will process the purified mixed rare
earth carbonate produced at Songwe Hill.

Through its 90% ownership of Maginito (www.maginito.com
(http://www.maginito.com/) ), Mkango is also 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.

Following the recent acquisition of HyProMag, Maginito holds a 100% interest
in HyProMag focused on short loop rare earth magnet recycling in the UK, a 90%
direct and indirect interest (assuming conversion of Maginito's convertible
loan) in HyProMag GmbH, a company focused on short loop rare earth magnet
recycling in Germany, and a 100% 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.

A new US subsidiary, to be jointly owned by Maginito and CoTec, will be formed
to develop rare earth recycling opportunities in the United States.

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)

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 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, the
Company 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, 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, Kasia Brzozowska

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 7186 9004/5

 

Bacchus Capital Advisers

Financial Adviser

Richard Allan

UK: +44 203 848 1642

UK: +44 7857 857 287

richard.allan@bacchuscapital.co.uk (mailto:richard.allan@bacchuscapital.co.uk)

 

Tavistock Communications

PR/IR Adviser

Jos Simson, Cath Drummond

UK: +44 (0) 20 7920 3150

mkango@tavistock.co.uk

 

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
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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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