REG - Mkango Resources Ltd - HYPROMAG USA RECEIVES FINANCE LOI FROM US BANK

Mkango ResourcesAnnouncement

12/06/2025 07:00

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RNS Number : 4880M  Mkango Resources Limited  12 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 USA RECEIVES "MAKE MORE IN AMERICA" DOMESTIC FINANCE LETTER OF
INTEREST FOR UP TO US$92 MILLION FROM US EXIM BANK

 

London / Vancouver: June 12, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce HyProMag USA, LLC, a Delaware corporation ("HyProMag USA"
or the "Project") has received a Make More in America (MMIA) domestic finance
letter of interest ("LOI") from the U.S. Export-Import ("EXIM") Bank for its
first integrated rare earth recycling and magnet making facility in
Dallas-Fort Worth, Texas.

In terms of the letter, EXIM may be able to consider potential financing of up
to $92 million of the project's costs with a repayment tenor of 10 years.

Julian Treger, CoTec CEO commented: "We are very pleased with EXIM's interest
in the Project. The Project is strongly aligned with EXIM's "Make More in
America" initiative, which provides beneficial financing terms for U.S.
companies facing oversees competition to ensure the United States reshores
certain critical export areas, including the domestic manufacturing of
permanent NdFeB magnets. We believe that the Project could be a major
contributor to the United States' targeted permanent magnet independence and
the speed at which HyProMag USA's capabilities could be deployed distinguishes
the Project from potential competitors."

Will Dawes, Mkango CEO commented: "The HyProMag USA development will be
transformational for rare earth supply chains in the United States, and we are
very pleased to see this reflected in the interest from EXIM. With the
detailed engineering phase for the project well underway, HyProMag USA is well
positioned to create a major new domestic hub for recycling and magnet
manufacturing, and a platform for further growth in North America."

The issuance of this LOI is aligned with Executive Order 2421 of March 20,
2025 "Immediate Measures to Increase American Mineral Production" which
includes near-term actions to be determined and implemented by the agencies to
fast-track permits, mobilize capital for mineral producers, and create offtake
agreements for strategic stockpiling for minerals critical to the United
States' defense, technology, and energy.

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 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.

In November 2024, HyProMag announced an independent Feasibility Study which
includes a Dallas Fort Worth recycling and magnet Hub, and two pre-processing
facilities located in South Carolina and Nevada respectively i  (#_edn1) . In
March 2025, HyProMag USA announced the expansion of the detailed engineering
phase to include three HPMS vessels(( ii  (#_edn2) )) and that it was
initiating concept studies for further expansion and complementary "Long Loop"
recycling(( iii  (#_edn3) )). 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.

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.(( iv  (#_edn4) ))

Ownership

HyProMag USA is owned 50:50 by CoTec and HyProMag Limited ("HyProMag").
HyProMag 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 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, 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 rolling out HPMS recycling technology into the United
States via the 50/50 owned HyProMag USA 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 and
Pulawy 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 the potential financing from EXIM, the
expected annual production from HyProMag USA, 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://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)
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

 iii  (#_ednref3) Conventional leach, extraction purification and
precipitation process

 iv  (#_ednref4)
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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