REG - Mkango Resources Ltd - HYPROMAG USA TO APPOINT EPCM PROVIDER

Mkango ResourcesAnnouncement

05/12/2024 07:00

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RNS Number : 8644O  Mkango Resources Limited  05 December 2024

 

 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 COMMENCES PROCESS TO APPOINT EPCM PROVIDER

FOR RARE EARTH MAGNET RECYCLING AND MANUFACTURING PROJECT

 

London / Vancouver: December 5, 2024 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce the initiation of a "Request for Proposal" process from
leading Engineering, Procurement and Construction Management ("EPCM")
providers to complete the detailed engineering design, procurement and
construction management phase for HyProMag USA LLC. ("HyProMag USA")
state-of-the-art rare earth magnet recycling and manufacturing project in the
United States (the "Project").

The results of the positive feasibility study for the Project were announced
on November 25, 2024, which can be accessed via the following link:
https://hypromagusa.com/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/
(https://hypromagusa.com/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/)

The detailed engineering design phase will include the completion of
sufficient engineering design works to support development of the AACE 1 
Class 1 capital cost estimate to update that of the Feasibility Study. This
will also support the final site selection efforts which are to be completed
in H1 2025 and allow the commencement of site permitting in line with the
initial project schedule. This targets initial revenue in Q1 2027.

Following completion of the detailed engineering design phase, a decision is
expected to be taken mid-2025 as to whether HyProMag USA will proceed with the
final procurement and construction of the Project (the "Notice to Proceed ").

Julian Treger, CoTec CEO commented: "Following the successful completion of
the independent Feasibility Study, we are looking forward to working with
leading EPCM providers to build these facilities. The detailed engineering
design phase is expected to deliver further cost savings and design
improvements which should enhance the Project's metrics. The company is now
focused on working with its stakeholders and potential partners in securing
funding from the U.S. Government, financing, off-take and feed supply. The
end-to-end process of recycling end-of-life NdFeB magnets into new sintered
NdFeB magnets is supported by the Minerals Security Partnership(2) which aims
to accelerate the development of secure, diverse, and sustainable supply
chains for critical minerals."

Will Dawes, Mkango CEO commented: "Momentum continues on the Project following
the positive results from the feasibility study announced last week, and we
are very excited to be pushing forward with the EPCM selection process. This
important Project will help catalyze further development of a robust domestic
ecosystem for rare earth magnet recycling and manufacturing in the United
States, and will be underpinned by rigorous design and engineering standards.
We look forward to working with the Project team as we move to the next stage
of development."

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.

About HyProMag

HyProMag is commercializing the patented Hydrogen Processing of Magnet Scrap
("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.

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.

The HPMS process recovers neodymium iron boron ("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.

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 is an environment, social, and governance
("ESG")-focused company investing in innovative technologies that 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 it 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. It 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) .

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 HyProMag's 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.

For more information, please visit www.mkango.ca (about%3Ablank)

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 the Recycling Plants being developed by Maginito in the UK, Germany
and the US (the "Maginito Recycling Plants"), the implementation of matters
set out in the Feasibility Study, 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, 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 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 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, Caroline Rowe

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 7186 9004/5

 

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 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.

 1  https://web.aacei.org/about/about-aace
(https://web.aacei.org/about/about-aace)

(2)
https://www.state.gov/joint-statement-on-the-minerals-security-partnership-announce-support-for-mining-processing-and-recycling-projects/

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