REG - Mkango Resources Ltd - GRANT FUNDED HYPROMAG PROJECT

Mkango ResourcesAnnouncement

23/11/2022 07:01

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RNS Number : 2535H  Mkango Resources Limited  23 November 2022

 

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

MKANGO ANNOUNCES GRANT FUNDED HYPROMAG PROJECT TO DEVELOP GERMANY'S FIRST RARE
EARTH MAGNET RECYCLING HPMS PLANT WITH FIRST PRODUCTION TARGETED FOR 2024

 

Highlights

·    HyProMag GmbH has been awarded a €3.7 million grant for a new
project to further develop the local knowledge base, infrastructure and
recycled NdFeB production capacity to underpin its transition to commercial
production in Germany

·    Initial capacity will be a minimum of 100tpa NdFeB, comprising
recycled rare earth sintered magnets, alloy pellets and powders and will be
the first in Germany using the patented HPMS (Hydrogen Processing of Magnet
Scrap) process, with first production targeted for 2024

·    HyProMag GmbH is 80% owned by HyProMag Limited (42% Mkango), which is
developing a similar sized recycling plant at Tyseley Energy Plant in the UK
together with the University of Birmingham, with first production targeted for
2023

·   HyProMag GmbH is 20% owned by Professor Carlo Burkhardt of Pforzheim
University, co-ordinator of the €14m SusMagPro (www.susmagpro.eu
(http://www.susmagpro.eu) ) and €13m REEsilience (www.reesilience.eu
(http://www.reesilience.eu) ) EU funded recycling projects, with approximately
40 partners across the European supply chain

·   Rare earth magnet recycling and related downstream processes are core
components of Mkango's "mine, refine, recycle" strategy and the Company
continues to evaluate further opportunities to grow the business in Europe,
North America and Asia

London / Vancouver: November 23, 2022 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
(the "Company" or "Mkango") is pleased to announce that HyProMag GmbH has been
awarded grants totalling €3.7 million for a new project, entitled
"Innovation Centre for Science & Economy Northern Black Forest IZWW" (the
"Project"), comprising a €2.5 million grant from the European Regional
Development Fund (ERDF) and a €1.2 million grant from the Ministry of
Economic Affairs, Labour and Tourism Baden-Württemberg.

The total cost of the Project is expected to be €6.1 million, of which
approximately 60% will be funded by the grants, on the basis that for each
€1 spent on the Project by HyProMag GmbH, a further €1.50 contribution can
be claimed from the grants. The first phase of the Project includes
development of a production facility in Baden-Württemberg State with a
minimum capacity of 100tpa NdFeB comprising recycled rare earth sintered
magnets, alloy pellets and powders.

The initial production facility would be a similar size to the £4.3 million
project being developed by HyProMag Limited and the University of Birmingham
at Tyseley Energy Park in the UK, funded by Driving the Electric Revolution,
an Industrial Strategy Challenge Fund challenge delivered by UK Research and
Innovation ("UKRI").

HyProMag GmbH was established to commercialise HPMS technology in Germany and
EU, and to further support Government initiatives to strengthen European rare
earth supply chains and accelerate the green transition, and the Project is a
major milestone in fulfilment of this strategy.

William Dawes, Chief Executive of Mkango stated: "This is an exciting
milestone for Mkango, HyProMag GmbH, HyProMag Limited, which significantly
enhances the group's production pipeline, targeting first production in the UK
in 2023 and Germany in 2024, with North America developed in parallel. We
envisage that the recycling of rare earth magnets will play a key role in the
development of robust supply chains to catalyse and support growth in the
electric vehicle sector and in other clean technologies.

"This Project further cements Mkango's and HyProMag's early mover advantage in
the rare earth magnet recycling sector, highlighting its competitive position
and benefiting from a very strong network of industry and academic partners."

Professor Carlo Burkhardt, Director of HyProMag GmbH stated: "Setting up this
ultra-efficient manufacturing facility for rare earth permanent magnets is a
unique opportunity to establish technological leadership along the entire
value chain for rare earth magnets. By combining the competencies of industry
and science in the Northern Black Forest and further locations in
Baden-Württemberg, the Project will play a pivotal role in supporting the
structural change from internal combustion engines to electromobility.
Furthermore, it will enable development of further high-performance
applications, where permanent magnets and rare earths already have a central
role as critical components, which will become even more important in the
foreseeable future."

Rare earth magnets play a key role in clean energy technologies including
electric vehicles and wind turbine generators, and they are also a key
component in electronic devices including mobile phones, hard disk drives and
loudspeakers. The development of domestic sources of recycled rare earths in
Germany via HPMS is a significant opportunity to fast-track the development of
sustainable and competitive recycled rare earth magnet production.

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.

About Mkango Resources Limited

Mkango's corporate strategy is to develop new sustainable primary and
secondary sources of neodymium, praseodymium, dysprosium and terbium to supply
accelerating demand from electric vehicles, wind turbines and other clean
technologies. This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare earths
sector.

Mkango is developing Songwe Hill in Malawi with a Feasibility Study completed
in July 2022. Malawi is known as "The Warm Heart of Africa", a stable
democracy with existing road, rail and power infrastructure, and new
infrastructure developments underway.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical company
and the second largest manufacturer of nitrogen and compound fertilizers in
the European Union, have agreed to work together towards development of a
rare earth Separation Plant at Pulawy in Poland (the "Pulawy Separation
Plant"). The Pulawy Separation Plant will process the purified mixed rare
earth carbonate produced at Songwe Hill.

Through its ownership of Maginito (www.maginito.com (http://www.maginito.com/)
), Mkango is also 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 42% interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com (http://www.hypromag.com/) ), with an option to increase its
interest to 49%.

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)

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, ,governmental action relating to COVID-19, COVID-19 and other
market effects on global demand and pricing for the metals and associated
downstream products for which Mkango is exploring, researching and developing,
factors relating the development of the Pulawy Separation Plant, the
production facilities in Baden-Württemberg State and Tyseley Energy Park (the
"Plants"), including the outcome and timing of the completion of the
feasibility studies, cost overruns, complexities in building and operating the
Plants, changes in economics and government regulation, the positive results
of feasibility studies and delays in obtaining financing or governmental
approvals for, and the impact of environmental and other regulations relating
to, Songwe and the Plants. 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

 

BlytheRay

Financial Public Relations

Tim Blythe

UK: +44 207 138 3204

 

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.

 

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