REG - Mkango Resources Ltd - HYPROMAG USA'S PRODUCT CARBON FOOTPRINT STUDY

Mkango ResourcesAnnouncement

05/03/2025 07:00

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RNS Number : 3620Z  Mkango Resources Limited  05 March 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's ISO-COMPLIANT PRODUCT CARBON FOOTPRINT STUDY
CONFIRMS EXCEPTIONALLY LOW CO(2) FOOTPRINT of 2.35 kg CO(2) eq. per kg of
NdFeB CUT SINTERED BLOCK

 

London / Vancouver: March 5, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce the completion of an independent, Product Carbon Footprint
(the "PCF") analysis conducted in accordance with ISO 14067:2018 by Minviro
Limited ("Minviro") for HyProMag USA LLC. ("HyProMag USA or the Project"),
which is developing a major new domestic source of recycled rare earth
permanent magnets in Texas, United States.

 

Minviro confirmed a PCF of 2.35 kg of CO(2) eq. per kg of NdFeB cut sintered
block product i  under the independent Feasibility Study ii  (the "Feasibility
Study") base case scenario of 750 metric tons payable of sintered neodymium
iron boron ("NdFeB") magnets and 291 metric tons of associated NdFeB
co-products annually. Furthermore, Minviro assessed that the associated
HPMS iii  recycled NdFeB alloy powder, which is a co-product produced by
HyProMag USA would have a carbon footprint of 0.38 kg of CO(2) eq. per kg of
NdFeB alloy powder product.

 

A PCF is a standardized, scientific method for quantifying the direct and
embodied environmental impacts associated with a particular product or
process. The PCF was conducted in accordance with ISO-14067 standards sourcing
data from the Feasibility Study and public and commercial databases such as
ecoinvent 3.10.

 

Julian Treger, CoTec CEO commented: "We are very pleased with the results of
the Minviro Study, which further demonstrates the low carbon footprint
potential of HyProMag's technology. HyProMag has the capacity to provide the
United States with the lowest carbon domestic source of permanent magnets to
accelerate the revitalizing of U.S. rare earth permanent magnet production,
metallization, and skills development, a strategic priority for the U.S.
Government."

 

Will Dawes, Mkango CEO commented: "HyProMag has the opportunity to transform
rare earth magnet supply chains in USA, Europe and Asia, leveraging off HPMS
and associated magnet manufacturing, to produce a rare earth magnet product
suite with a minimal carbon footprint, the latter now confirmed by this
independent analysis by Minviro."

 

Robert Pell, Minviro CEO commented: "Having worked on rare earth and permanent
magnet sustainability for over a decade, the PCF data that Minviro conducted
clearly demonstrates that this innovative short-loop recycling technology
delivers a remarkably low carbon footprint."

 

Ownership

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. HyProMag USA is owned
50:50 by CoTec and Maginito.

 

HPMS technology

The Project is underpinned by the patented Hydrogen Processing of Magnet Scrap
("HPMS") technology which is being commercialized by HyProMag in the United
States, United Kingdom and Germany. HPMS was developed at the Magnetic
Materials Group at the University of Birmingham and is exclusively licensed to
HyProMag. The HPMS process recovers NdFeB permanent magnets from end-of-life
scrap streams in the form of a demagnetized NdFeB metallized alloy powder for
remanufacture into recycled NdFeB magnets with a significantly reduced carbon
footprint and has major competitive advantages versus other magnet recycling
methods using chemical processes.

 

HyProMag USA Project and Infrastructure included in the PCF Analysis Study
Scope

The Project is based on development of a state-of-the-art 40-year rare earth
magnet recycling and manufacturing facility in Dallas-Fort Worth, Texas,
capable of producing up to 750 metric tons payable of sintered NdFeB magnets
and 291 metric tons of associated neodymium iron boron (NdFeB) co-products
(total payable capacity - 1,041 metric tons NdFeB) annually. The potential
recycling and manufacturing site is approximately 100,000 square feet in area,
36 feet in height and utilizes a pre-existing light industrial storage unit
with basic utilities fully installed.

 

The HyProMag USA cradle-to-gate product carbon footprint examines the
production of NdFeB sintered materials from magnet scrap at HyProMag's 40-year
magnet recycling and manufacturing facility in Dallas-Fort Worth, Texas for
the reference year 2024.  The functional unit for this study is, "1 kg of
NdFeB cut sintered block" and the reference flow is, "1 kg of NdFeB cut
sintered block produced in 2024 from end-of-life neodymium iron boron
magnets."

 

HyProMag USA primary product is 750 metric tons per annum of NdFeB sintered
blocks and magnets at an average realised price per kg used in the the
independent Feasibility Study. The project will co-produce several grades of
co-products, which include magnet swarf, sintered block off cuts, HPMS NdFeB
alloy powder for chemical processing, and for external processing.
Environmental impacts have been allocated between the primary product and the
co-products using economic allocation based on their respective market values
throughout the study.

 

Power supply will be provided through local utility providers assuming 100%
grid sourced renewable power. Liquified industrial gasses will be supplied by
local distributors. These gases will be delivered and stored on-site in
dedicated tanks equipped with vaporizers to ensure the conversion from liquid
to gas as needed for the operations in an "over the fence" solution.

The System boundary used for the PCF study is shown in Figure 1.

 

Figure 1: Diagram of the HyProMag USA System boundary used for the PCF

 

The logistics for the project include two main satellite spokes: Satellite
Spoke 1, potentially located in Las Vegas, or Reno, Nevada and a Satellite
Spoke 2, potentially located in South Carolina as depicted in Figure 2. The
transportation process from each Satellite Spoke to the hub employs intermodal
(truck and rail) transportation.

Figure 2: Map of the United States showing planned locations of HyProMag USA's
operations and functions

 

 

HyProMag USA and increasing electrification of the economy

 

Increasing electrification of the economy is accelerating growth in the
defense, robotics, AI and other industries, such as electric vehicles and wind
power generation, which rely on permanent magnets. Along with end-of-life
electronics these sectors will also contribute to a rapidly expanding pool of
scrap battery material available for recycling using HyProMag's HPMS process.

 

As well as improving security of supply and reducing landfill along with its
associated environmental costs, one of the advantages of HyProMag compared to
the production of rare earths from mine-based supply is its highly energy
efficiency, which means that HyProMag NdFeB production is far less carbon
emitting. The PCF estimated the carbon emissions generated in HyProMag's short
loop HPMS recycling process will be 2.35 kg CO(2)-e per kg of NdFeB cut
sintered block. HyProMag USA calculate that when compared to a mine to magnet
primary based production of 84 kg of CO(2) eq. per kg of NdFeB plated magnet
(Wang et al., 2025) iv , the HyProMag process shows a significantly lower
carbon footprint with an approximate 95% reduction v  of CO(2)-eq emissions.

 

The carbon footprint figures referenced here (Wang et al., 2025) are derived
from separate studies that do not adhere to the same methodology or system
boundaries required by ISO 14067:2018. As this standard mandates a consistent
life cycle assessment approach-including uniform data quality, allocation
methods, and cut‐off criteria-the figures can be used as an indicative guide
but cannot be directly compared. Any comparison between these numbers should
be approached with caution, as differences in study scope and methodology can
lead to misleading conclusions.

 

Independent Minviro Review

The Minviro PCF study was completed by Dr Robert Pell PhD and Kangyu Li in
December 2024.

The PCF study was independently critically reviewed and complies with ISO
14040 and ISO 14067. The PCF appropriately summarizes the study's goals,
scope, methodology, assumptions, life cycle inventory, data quality, results,
and sensitivity analyses. Responsible for the critical review report and
critical review statement was completed by Tara Ryan (BChemEng/Economics) in
March 2025.

 

Minviro have reviewed and approved the PCF scientific and technical content of
this news release.

 

About Minviro

Minviro is a London-based, globally recognized consultancy and technology
company specializing in advanced life cycle assessments for the technology
metals sector. With a proven track record of partnering with leading mining
and metals organizations, battery manufacturers, and OEMs, Minviro delivers
robust, science-based quantitative environmental and climate impact data for
mineral resource projects. Our innovative methodologies and rigorous LCA
frameworks enable stakeholders to make environmentally informed decisions and
drive the transition toward sustainable, low-carbon operations.

For more information, please visit www.minviro.com (http://www.minviro.com) .

About HyProMag

 

HyProMag is commercializing HPMS recycling technology in the UK, Germany and
United States. HyProMag is also evaluating other jurisdictions, and in
mid-2024 launched a collaboration with Envipro on rare earth magnet recycling
in Japan. HPMS technology was developed at the Magnetic Materials Group (MMG)
at 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 this solution.

 

The MMG is internationally recognized for its work on the circular economy of
rare earth magnets. The group has made major contributions to research and
industrial application of hydrogen for processing of magnets. Professor
Emeritus Harris pioneered the initial work on hydrogen decrepitation (HD),
currently used worldwide to produce magnets, and co-authored the 1986 paper on
the world's first hydrogen based sintered magnet. Today, almost all NdFeB
magnet production and recycling methods take advantage of the HD process.

 

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 symbol 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 ("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 has signed a letter of Intent with Crown PropTech Acquisitions to list
Mkango's Songwe Hill and Pulawy Rare Earths 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 successful conclusion of the MDA, 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"), the results of the Feasibility Study and 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 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 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 CoTec, please contract:

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

braam.jonker@cotec.ca

Canada: +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

Canada: +1 403 444 5979

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   Cut Sintered Block Product is the final product prior to nickel plating
and magnetization

 ii   November 2024 independent HyProMag USA feasibility study undertaken by
a multidisciplinary team appointed by CoTec and Mkango and led by independent
engineers, Canada-based BBA USA Inc. ("BBA") and U.S. based PegasusTSI Inc.
("PegasusTSI") with other independent experts and support from University of
Birmingham, HyProMag Ltd and HyProMag GmbH.

 iii  HPMS is the patented "Hydrogen Processing of Magnet Scrap"

 iv   Wang, Q-Q.; Wang, L.; Zhao, S.; Li, F-P.; Chen, W-Q.; Wang, P. (2025) A
critical life cycle assessment of present and potential rare earth circularity
routes from permanent magnets. Resources, Conservation and Recycling, 215, pp.
1-12. https://doi.org/10.1016/j.resconrec.2024.108106

 v   HyProMag USA calculated this percentage reduction in CO(2) eq.: 2.35 kg
CO(2) eq. per kg of NdFeB cut sintered block / 84 kg CO(2) eq. per kg of NdFeB
sintered plated magnet with a small allowance for Nickel plating and
magnetization.

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