REG - Mkango Resources Ltd - UPDATE ON MAGINITO AND COTEC US JOINT VENTURE

Mkango ResourcesAnnouncement

03/01/2024 07:15

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RNS Number : 3980Y  Mkango Resources Limited  03 January 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

 

MKANGO SUBSIDIARY MAGINITO AND COTEC FORM HYPROMAG USA JOINT VENTURE AND
COMMENCE PROCESS TO APPOINT EPCM PROVIDER FOR THE FEASIBILITY STUDY

 

London / Vancouver: January 3, 2024 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce that CoTec and Maginito Limited ("Maginito") have formed a
50/50 joint venture entity which will roll out HyProMag Limited's ("HyProMag")
Hydrogen Processing of Magnet Scrap ("HPMS") recycling technology into the
United States. The newly formed joint venture company, HyProMag USA, LLC
("HyProMag USA" or the "Joint Venture"),  plans to develop a low cost, low
carbon, sustainable rare earth magnet recycling and production business
underpinned by HPMS. HyProMag has sublicenced the HPMS technology to HyProMag
USA.

HyProMag is 100 per cent owned by Maginito, which is owned on a 79.4/20.6 per
cent basis by Mkango and CoTec, and is commercialising rare earth magnet
recycling in the UK, Germany and United States. Revenue from the Joint Venture
is targeted for 2025/2026.

HyProMag USA will initially focus on completing a bankable feasibility study
("Feasibility Study") through a hub and spoke model using three HPMS vessels
and one magnet manufacturing hub (together the "US Project").

The Joint Venture has recently initiated a "Request for Proposal" process from
leading Engineering, Procurement and Construction Management ("EPCM")
providers and has ordered three HPMS reactors  to expedite the development of
the US Project. Following completion of the Feasibility Study, CoTec and
Mkango will make a joint decision as to whether the Joint Venture will proceed
with the construction of the US Project.

Julian Treger, CoTec CEO commented: "HyProMag is supported by the Minerals
Security Partnership 1  (#_ftn1) and we are looking forward to working with
leading EPCM providers to design and build these facilities using HyProMag's
considerable experience from the plants being developed in the UK and in
Germany.  CoTec and Mkango are focused on delivery and will be exploring US
Government funding and strategic partnerships for feed supply and rare earth
element ("REE") magnet offtake in the first half of 2024.

"We look forward to working and collaborating with local, state and federal
stakeholders targeting the completion of the feasibility study".

Will Dawes, Mkango CEO commented: "We see the United States as a core
component of our growth strategy and look forward to progressing the US
feasibility study over the course of the year, in parallel with further
development of operations in the UK, Germany and other jurisdictions.

HyProMag's recycling technology has major competitive advantages versus other
recycling technologies and is a key enabler for cost effective and energy
efficient separation, recycling and production of rare earth magnets with a
significantly reduced carbon footprint. We are receiving strong interest for
recycled magnets from potential customers and for recycling solutions from
original equipment manufacturers ("OEMs"), and automotive and recycling
companies."

 

HPMS technology was developed 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 -HPMS
provides the solution. HyProMag's company presentation can be viewed via the
following link: HyProMag Corporate Presentation
(https://hypromag.com/wp-content/uploads/2023/09/HyProMag-Corporate-Introduction-28-July-2023.pdf)

Maginito

Maginito is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec. It is
focused on 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.

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, and a 100 per cent 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.

About Mkango Resources Ltd.

Mkango's corporate strategy is to develop new sustainable sources of
neodymium, praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies. In
parallel with development of its mining assets, Mkango plans to become a
market leader in the production of recycled rare earth magnets and alloys via
its interest in Maginito. 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. Discussions regarding the Mine Development
Agreement ("MDA") for Songwe Hill are ongoing with the Government of Malawi.

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

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)

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) .

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"), 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 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

 

Tavistock Communications

PR/IR Adviser

Jos Simson, Cath Drummond

UK: +44 (0) 20 7920 3150

mkango@tavistock.co.uk

 

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  (#_ftnref1)
https://www.state.gov/joint-statement-on-the-minerals-security-partnership-announce-support-for-mining-processing-and-recycling-projects/).

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