REG - Mkango Resources Ltd - AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY

Mkango ResourcesAnnouncement

20/05/2026 07:00

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RNS Number : 9661E  Mkango Resources Limited  20 May 2026

 MKANGO RESOURCES LTD.
 550 Burrard Street
 Suite 2900
 Vancouver
 BC V6C 0A3
 Canada

 

 

MKANGO ANNOUNCES AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY

 

London / Vancouver: May 20, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango" or the "Company") is pleased to announce that it has signed an asset
purchase agreement with Heraeus Amloy Technologies GmbH, to acquire its Remloy
rare earth magnet recycling business ("Remloy") for €8 million (US$9.4
million) in cash, of which €5 million (US$5.6 million) is payable on
closing, expected within the next three months, and €3 million (US$3.5
million) payable two years after closing (the "Transaction"). The initial
payment of €5 million (US$5.6 million) will be funded from Mkango's existing
cash balance following its £12.5 million (US$16.8 million) equity placement,
which closed on April 10, 2026.

Remloy has developed a plant in Bitterfeld, Germany, which recycles
end-of-life rare earth magnets via a melting process (medium loop recycling)
to produce neodymium-iron-boron ("NdFeB") alloy powders for the bonded and hot
deformed magnet markets, complementary to HyProMag's short loop recycling
process to produce sintered magnets.

Highlights

·    Fully commissioned plant with significant investment in equipment and
feedstock to date, no further major development capital expenditure required
and strong operational and technical team in place

·    Production test runs underway for customer samples, with first
commercial sales of NdFeB alloy powder product targeted by the end of the year

·    Very large stockpile of rare earth magnet and alloy feedstock
totalling more than 300 tonnes underpins operations and provides future
trading opportunities

·    Complementary product suite to HyProMag, further enhancing Mkango's
one-stop-shop solution for customers

·    Potential synergies with the Mkango group include:

o  Enhanced platform for growth in major market for magnetic materials
through the development of a further operating site in Germany

o  Supply of end-of-life magnets from the Remloy stockpile for processing by
the HyProMag group

o  Supply of feedstock derived from Hydrogen Processing of Magnet Scrap
("HPMS") by HyProMag to Remloy

o  Technical and grant funding collaboration between Mkango, Remloy,
HyProMag, University of Birmingham and University of Pforzheim

o  Co-marketing of products from Mkango, HyProMag and Remloy, providing an
expanded product suite to customers

o  Future opportunity to supply primary rare earth feedstock from Mkango's
Songwe Hill project to Remloy operations for blending with recycled feedstock

·    Significant growth opportunities through scale-up of existing
operations and bolt on opportunities for other rare earth metal and alloy
process technologies such as strip casting

William Dawes, Chief Executive Officer of Mkango commented: "We are very
pleased to announce this Transaction and look forward to working with the
Remloy team and all stakeholders to grow the Remloy business within Mkango and
to further develop the rare earth supply chain and ecosystem for recycling and
magnet manufacturing in Germany and its neighbours.  On April 28, 2026,
HyProMag GmbH's production facility in Pforzheim was officially opened by
senior representatives of the German Government and following this
Transaction, Mkango will have two rare earth plants in Germany with the
capability to provide customers with a sustainable supply of rare earth
products for the sintered, bonded and hot deformed magnet markets."

David Bender, Head of Remloy, commented: "I am very pleased to continue the
Remloy journey together with Mkango. The Remloy team has worked hard to
develop the business to this point, and the next phase will be about
execution: bringing products to customers, scaling commercial activities, and
leveraging synergies across the Mkango group. I am convinced that this setup
provides a strong basis to further develop rare earth magnet production and
recycling capabilities in Germany and Europe."

Total capacity of the production facility is 500 tonnes of NdFeB alloy per
year and the plant is targeting scale-up to this level of production over the
next few years with minimal capital expenditure required. The assets are
currently non-revenue generating and therefore no historic profits are
attributable to them, given the facility is still in the start-up phase.
Multiple production runs have been completed with the current focus on product
optimisation, sample generation for customers and ongoing offtake discussions
to support the commencement of commercial sales and targeted scale-up of
operations, whilst capitalising on potential synergies with Mkango and
HyProMag.

The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth
alloys and other raw materials, which helps underpin the growth strategy. With
this significant stockpile, Mkango is now very well positioned in the
secondary market for magnetic materials, further enhanced by access to HPMS
technology being commercialised by HyProMag, which enables cost effective and
energy efficient liberation of embedded NdFeB magnets from end-of-life and
production scrap streams.

The Transaction is expected to close in the summer of 2026, subject to
customary closing conditions and receipt of required regulatory approvals.

 

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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 Holdings Ltd ("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 Limited 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 expanding HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA joint venture company.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths
project in Malawi and the proposed Puławy rare earths separation plant in
Poland. Both the Songwe and Puławy projects have been selected as Strategic
Projects under the European Union Critical Raw Materials Act. Songwe has also
received Development Funding from the U.S. International Development Finance
Corporation (DFC), the U.S. Government's development finance institution,
securing US$4.6 million in reimbursable funding for Front End Engineering and
Design. Mkango signed a Business Combination Agreement with Crown PropTech
Acquisitions to list the Songwe Hill and Puławy rare earths projects on
NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.

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. 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 ability to obtain approval by the applicable German
regulatory authorities for the Transaction, the completion of required
consultations relating to the transfer of Remloy being completed by Heraeus
Amloy Technologies, there being no outstanding objections or refusals
preventing or delaying closing, potential synergies and integration among and
between Mkango, HyProMag and Remloy, 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, 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 Pulawy, and
future investments in the United States pursuant to the proposed cooperation
agreement between Maginito and CoTec, cost overruns, complexities in building
and operating the plants, and the positive results of feasibility studies on
the various proposed aspects of Mkango's and Maginito'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 because 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

Chief Executive Officer

will@mkango.ca (mailto:will@mkango.ca)
 

 

Alexander Lemon

President

alex@mkango.ca (mailto: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

Caroline Rowe, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 4530 9160/9177

 

H&P Advisory Limited

Joint Broker

Andrew Chubb, Leif Powis, Jay Ashfield

UK: +44 20 7907 8500

 

Montfort Communications

Ann-marie Wilkinson, Jack Hickman

UK: +44 20 3514 0897

mkango@montfort.london

 

 

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.

 

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