REG - Mkango Resources Ltd - FIRST RECYCLED RARE EARTH ALLOY PRODUCTION

Mkango ResourcesAnnouncement

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RNS Number : 8459P  Mkango Resources Limited  07 July 2025

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

 

 

FIRST RECYCLED RARE EARTH ALLOY PRODUCTION AT TYSELEY ENERGY PARK, BIRMINGHAM,
UK

 

London / Vancouver: July 7, 2025 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") is pleased to announce first production runs for the commercial
scale Hydrogen Processing of Magnet Scrap ("HPMS") vessel, which is currently
being commissioned by the University of Birmingham ("UoB") with the support of
commercial partner, HyProMag Limited ("HyProMag"), as part of the new
scaled-up rare earth magnet recycling and manufacturing plant (the "Plant")
located at Tyseley Energy Park, Birmingham, UK ("TEP").

The HPMS vessel is fundamental to the Plant, producing a high grade, recycled
neodymium-iron-boron ("NdFeB") alloy powder for commercial sale or to feed
downstream magnet manufacturing. All major equipment for the Plant has been
constructed on site and will be commissioned sequentially over the coming
months.

·     The Plant at TEP is the only commercial scale rare earth sintered
magnet making facility in the UK. Development of the Plant was largely funded
by Driving the Electric Revolution, an Industrial Strategy Challenge Fund
delivered by UK Research and Innovation via UoB

·      As the commercial partner for the Plant and exclusive licensee
from the UoB for the patented HPMS technology, HyProMag has entered into an
agreement with the UoB for utilisation of Plant equipment and infrastructure

·        HyProMag is targeting UK sales of around 0.5 tonnes per month
of recycled HPMS NdFeB product by the end of July, increasing to a minimum of
2 tonnes per month by the end of 2025, in advance of potential expansion to
100-350 tonnes per year in 2026 with further expansion options being evaluated
 

·     HyProMag commercial operations will be underpinned by existing
NdFeB scrap inventories, ongoing purchases of NdFeB scrap, as well as product
offtake, spot purchases and sales

·        The NdFeB product from HPMS has a total rare-earth content
(neodymium/praseodymium together with dysprosium/terbium) exceeding 28% and is
analogous to a typical NdFeB alloy for magnet manufacture, whilst having a
minimal CO(2) footprint relative to both primary and other recycled NdFeB
products. Initially sold to third parties for long-loop chemical processing,
this material will in future be used for magnet manufacture within HyProMag

·     Following the commissioning of the Plant's downstream powder
processing plant (for HPMS powder sieving, blending and jet milling), magnet
manufacturing presses and sintering furnaces, targeted by the end of Q3 2025,
HyProMag will have access to capacity for production of value-added magnets at
scale - enabling both customer qualification and commercial sales of rare
earth magnets, which will form an increasing proportion of the NdFeB product
mix going forward

·       At present, the accelerated pilot programme at the UoB is
providing NdFeB powder, block and finished magnet samples to customers, to
support product marketing, offtake discussions and scale-up of planned
operations in the UK, Germany and the United States as announced previously:
News | Mkango Resources Ltd.
(https://mkango.ca/news/hypromag-achieves-further-technical-milestones-as-piloting-ramps-up-in-advance-of-commercial-rare-earth-magnet-production-in/)

·    HPMS technology was developed by the Magnetic Materials Group
("MMG") at the University of Birmingham ("UoB"), and is underpinned by
approximately US$100 million of research and development funding

Will Dawes, Chief Executive of Mkango commented: "This is a major milestone
for Mkango, HyProMag, the University of Birmingham and all our stakeholders.
Furthermore, bringing back sintered magnet manufacturing to the UK after a
20-year hiatus will be a major step forward for the UK's critical mineral
ambitions. It also creates a strong platform for further expansion in the UK
and we are evaluating expansion options and partnership opportunities to
accelerate development."

Nick Mann, Managing Director of HyProMag Ltd commented: "Seeing first HPMS
powder production from the commercial scale vessel at Tyseley is a credit to
the dedication and vision of the combined HyProMag and University of
Birmingham teams who have worked hard to reach this milestone. We are looking
forward to optimising the process at scale to unlock recycled material for
rare earth magnet production in the UK."

Allan Walton, Head of the Magnetic Materials Group at the University of
Birmingham and Founding Director of HyProMag Ltd, commented: "The Magnetic
Materials Group has been at the forefront of research into recycling of rare
earth magnets since Emeritus Prof Rex Harris conceived the idea of directly
recycling spent sintered magnets back into new materials using hydrogen over
20 years ago. Since then, multiple process routes incorporating HPMS have been
developed and proven at pilot scale. This new Plant will enable commercial
scale demonstration of the technology for the first time, which has only been
possible because of the dedication and skills of the MMG and the support of
the wider University, including the School of Metallurgy and Materials."

In parallel with development of the UK Plant, HyProMag is rolling out HPMS
technology into Germany and the USA, and is also evaluating other
jurisdictions including Japan, Canada and South Korea. In Germany, HyProMag
GmbH ("HyProMag Germany") is developing a rare earth magnet recycling and
manufacturing plant at Pforzheim (the "Pforzheim Plant"), with first
production targeted by the end of 2025. HyProMag USA LLC ("HyProMag USA")
completed a feasibility study in 2024 for a rare earth magnet recycling and
manufacturing operation in the USA, with detailed engineering currently
underway and first production targeted for H1 2027.

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 Holdings
Corp "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 to
HyProMag Germany) in HyProMag Germany, 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 also owns the advanced stage Songwe Hill rare earths project in Malawi
("Songwe") and the Pulawy rare earths separation project in Poland ("Pulawy").
Both the Songwe and Pulawy projects have been selected as Strategic Projects
under the European Union Critical Raw Materials Act. Mkango has signed a
Business Combination Agreement with Crown PropTech Acquisitions to list the
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. 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 Songwe Hill, the recycling plants being developed by Maginito in the
UK, Germany and the US (the "Maginito Recycling Plants"), 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

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.

 

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