REG - Mkango Resources Ltd - MKANGO RELEASES Q3 2024 RESULTS

Mkango ResourcesAnnouncement

29/11/2024 07:00

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RNS Number : 1681O  Mkango Resources Limited  29 November 2024

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

MKANGO RELEASES Q3 2024 RESULTS

 

London / Vancouver: 29 November 2024 - Mkango Resources Ltd (AIM / TSX-V:MKA)
(the "Company" or "Mkango"), is pleased to announce that it has released the
Financial Statements and Management's Discussion and Analysis for the 3-month
period ending 30 September 2024. The reports are available under the Company's
profile on SEDARplus (www.sedarplus.com) and on the Company's website
(https://mkango.ca/investors/financials/
(https://mkango.ca/investors/financials/) ).

 

To view the Financial Statements, please click here:

http://www.rns-pdf.londonstockexchange.com/rns/1681O_1-2024-11-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1681O_1-2024-11-29.pdf)

 

To view the Management Discussion and Analysis, please click here:

http://www.rns-pdf.londonstockexchange.com/rns/1681O_2-2024-11-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1681O_2-2024-11-29.pdf)

 

 

HIGHLIGHTS AND RECENT MILESTONES

·   Cash position of US$2 million as at 30 September 2024 following the
£1.25 million capital raising on 5 September 2024 and subsequent receipts of
grant funding

·     Pursuant to the September capital raising, there are 25 million
in-the-money warrants outstanding at 7 pence exercise price per warrant.

·   Rare earth magnet recycling and manufacturing projects advancing to
commercial production in UK and Germany (2025) and USA (2027)

·     Subsequent to the Mining Development Agreement being signed,
strategic review completed for the advanced stage Songwe Hill Rare Earths
Project in Malawi and Pulawy Separation Project in Poland - Cohen &
Company appointed as USA Financial Advisor, encompassing opportunities for USA
listing and M&A, strategic and other financial advice, and Welsbach
Holdings as Supply Chain Advisor.

HyProMag USA

·    Positive feasibility study results for rare earth magnet recycling
and manufacturing project in Texas, USA announced in November 2024

·   US$503 million Net Present Value (NPV) and 31% Real Internal Rate of
Return i  (#_edn1) (IRR) at forecast prices

·    US$262 million NPV and 23% Real IRR at current prices

·     First revenue targeted in Q1 2027 with a Notice to Proceed
expected in mid-2025 following completion of detailed engineering, which will
commence shortly, funded by JV partner CoTec

·    A 3D fly through of the project feasibility design can be accessed
via the following link: HyProMag USA Facility Flythrough
(https://www.youtube.com/watch?v=ggpP9DK830M) , with a map of planned
locations of HyProMag USA's operations and functions below

HyProMag Ltd (UK)

·    Commissioning of scaled-up rare earth magnet recycling and
manufacturing plant at Tyseley Energy Park, Birmingham progressing in parallel
with piloting at University of Birmingham

·     Magnet presses commissioned and powder processing plant constructed
at Tyseley, with preparation for infrastructure development underway

·   Hydrogen Processing of Magnet Scrap (HPMS) vessel targeted for factory
acceptance test and available for delivery by end of February 2025

·    Completion of infrastructure developments and first production from
Tyseley targeted by the end of April 2025, with ongoing pilot production
enabling delivery of products to customers in advance of this

·   A video from the Birmingham Centre for Strategic Elements and Critical
Materials featuring the patented HPMS technology, developed by Birmingham
University Magnetic Materials Group and exclusively licenced to HyProMag, can
be accessed via the following link: https://f.io/5D2MmYzd
(https://f.io/5D2MmYzd) , with powder processing plant (constructed) and HPMS
vessel (under construction) shown below.

 

 

HyProMag GmbH (Germany)

·    Development of the scaled-up rare earth magnet recycling and
manufacturing plant in Germany is progressing on track for 2025 production

·    A site has been selected near Pforzheim, Germany and lease signed,
with planning for the infrastructure development progressing well

·     Equipment ordered to date includes HPMS vessel, magnet presses,
jet mill, sintering furnaces and other items

·  A 3D fly through of the project feasibility design can be accessed via
the following link: https://youtu.be/Ks83mVP_aG4
(https://youtu.be/Ks83mVP_aG4) , with the project site and schematic layout
illustrated below:

 

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 (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. Generally,
forward looking statements can be identified by the use of words such as
"targeted", "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, receipt of TSX-V approval for the Subscription, the
availability of (or delays in obtaining) financing to develop Songwe Hill, and
the various recycling plants in the UK, Germany and the US as well as the
separation plant in Poland, 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 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 various recycling and separation plants of Mkango and Maginito and
future investments in the United States pursuant to the 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 disclaims
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
undertakes 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

 

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) 7% real discount rates. NPVs are calculated by discounting
real US dollar cash flows from 2025

 

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