REG - Mkango Resources Ltd - HYPROMAG AGREEMENT WITH ELECTRONICS RECYCLER; ILS

Mkango ResourcesAnnouncement

24/07/2025 07:00

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RNS Number : 3247S  Mkango Resources Limited  24 July 2025

 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

 

 HYPROMAG USA ENTERS INTO AGREEMENT WITH GLOBAL ELECTRONICS RECYCLER,
INTELLIGENT LIFECYCLE SOLUTIONS, FOR FEEDSTOCK SUPPLY AND PRE-PROCESSING SITE
SHARE IN SOUTH CAROLINA AND NEVADA

 

London / Vancouver: July 24, 2025 - CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are
pleased to announce a feedstock supply and pre-processing site share agreement
between global electronics recycling company, Intelligent Lifecycle Solutions,
LLC ("ILS"), and HyProMag USA, LLC ("HyProMag USA" or the "Project") (the
"Supply Agreement").

·        ILS will secure and store neodymium iron boron ("NdFeB")
feedstock from hard disk drives ("HDDs") and other sources for HyProMag USA at
the ILS pre-processing sites in Williston, South Carolina and Reno, Nevada
(the "ILS pre-processing sites") in advance of the commissioning of HyProMag
USA's advanced stage rare earth magnet recycling and manufacturing plant to be
located in Dallas-Fort Worth, Texas (the "DFW Hub")

·        ILS will utilise the INSERMA ANOIA SL ("Inserma") "3(rd)
generation" HDD magnet separation system at its pre-processing sites. An
exclusive agreement was signed between the HyProMag Group and Inserma in
September 2024 i , and the Inserma technology is being rolled out across
multiple jurisdictions

·        The improved Inserma units provide fast, efficient magnet
separation from HDDs for Hydrogen Processing of Magnet Scrap ("HPMS")
processing together with clean separation of the printed circuit board for
immediate resale to 3(rd) parties

·        HyProMag USA is, inter alia, targeting HDD recycling geared
to the growth of hyperscale data centers, which is expected to accelerate
significantly in coming years

·        HyProMag USA will include the ILS pre-processing sites in its
detailed design and engineering. The ILS pre-processing sites will be able to
source multiple feed types to provide supply feed to the Project's magnet
recycling and manufacturing hub in Dallas-Fort Worth. Other NdFeB feedstock
sources being successfully processed to date by HyProMag include rotors from
electric motors, wind turbine magnets, speaker assemblies and MRIs

·        The Supply Agreement is expected to be the first in several
supply agreements to be entered into by HyProMag USA as the Project advances
to construction and commissioning

ILS is a global electronics recycling company processing electronic waste. It
is a full-service IT asset disposition, electronics recycling and scrap
purchasing company and is fully compliant in ISO 14001:2015, ISO 45001:2018
and "Responsible Recycling R2v3 Recycler" at its USA locations. Through ILS,
HyProMag USA will provide full traceability on its products to support the
"closed loop" circular economy and critical mineral supply chains within the
United States.

The collaboration builds on the relationship established between ILS, HyProMag
Limited ("HyProMag") and the Magnetic Materials Group ("MMG") at the
University of Birmingham ("UoB") through a number of European projects,
including the 2020 Innovate UK ii  grant funded project, "Rare-Earth Recycling
for E-Machines" ("RaRE") project with Hydrogen Processing of Magnet Scrap
("HPMS") in which HyProMag produced sintered NdFeB magnets from ILS feedstock,
and HyProMag continues to work closely with ILS across multiple jurisdictions.

Julian Treger, CoTec CEO commented: "We are very excited to partner with ILS
to grow the feed supply market in the United States and this collaboration is
a first step in securing reliable long-term feed supply for HyProMag USA to
sustain the Project as we advance towards construction. We believe that over
time we will be able to build sufficient feedstock to sustain several magnet
recycling and manufacturing hubs as the Company establishes itself as a key
player in the US REE magnet industry."

 "HyProMag USA is progressing with its financing and detailed design and has
the potential to supply the U.S. market with a sustainable, long term domestic
supply of NdFeB permanent magnets, enabling the creation of secure, low carbon
and traceable rare-earth supply chains."

Will Dawes, Mkango CEO commented: "The agreement with ILS, coupled with the
Inserma and HPMS technologies, creates a highly competitive and integrated
circular solution for recycling of NdFeB from HDDs, encompassing procurement
of HDDs via ILS, pre-processing using Inserma technologies, magnet liberation
using HPMS and short-loop magnet manufacturing to produce a high value rare
earth NdFeB magnet with a very low carbon footprint. Furthermore, the
agreement kick-starts operations on the ground, securing NdFeB inventory in
advance of commissioning of the DFW hub, and will facilitate increased
engagement in USA markets as we move towards project development."

Graham Davy, ILS CEO, commented: "We are delighted to be formalising our
longstanding partnership with HyProMag. Lifecycle Solutions will be using our
infrastructure to procure nationally rare earth material from government,
manufacturing, and businesses as well as other recycling sources.  Our
clients value HyProMag's short-loop, low carbon solution whist retaining
critical materials within the USA. Lifecycle Solutions will use its R2
accredited facilities in South Carolina, Nevada, to acquire and preprocess
Rare Earth material for HyProMag USA. Magnets recovered from its subsidiary
hard disk drive business will also be supplied."

HyProMag USA Feasibility Study

The Feasibility Study includes the DFW Hub, and two pre-processing facilities
located in South Carolina and Nevada respectively iii . In March 2025,
HyProMag USA announced the expansion of the detailed engineering phase to
include three HPMS vessels(( iv )) and that it was initiating concept studies
for further expansion and complementary "Long Loop" recycling(( v )). The DFW
Hub's annual production is expected to be 750 metric tons per annum of
recycled sintered NdFeB magnets and 807 metric tons per annum of associated
NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within
five years of commissioning) over a 40-year operating life. It is expected the
production facility will provide significant optionality to supply the U.S.
market with additional NdFeB alloy powder while assisting in revitalising the
U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing
jobs.

In March 2025, HyProMag USA announced the results of an independent
ISO-Compliant product carbon footprint study which confirmed an exceptionally
low CO(2) footprint of 2.35 kg CO(2) eq. per kg of NdFeB cut sintered block
product.(( vi ))

Ownership

HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is
100 per cent owned by Maginito Limited ("Maginito"), which is owned on a
79.4/20.6 per cent basis by Mkango and CoTec.

About HyProMag

HyProMag is commercializing HPMS recycling technology in the UK, Germany and
the United States. HPMS technology was developed at the Magnetic Materials
Group (MMG) at 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 this
solution.

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 symbols CTH and
CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource
extraction company committed to revolutionizing the global metals and minerals
industry through innovative, environmentally sustainable technologies and
strategic asset acquisitions. With a mission to drive the sector toward a
low-carbon future, CoTec employs a dual approach: investing in disruptive
mineral extraction technologies that enhance efficiency and sustainability
while applying these technologies to undervalued mining assets to unlock their
full potential. By focusing on recycling, waste mining, and scalable
solutions, the Company accelerates the production of critical minerals,
shortens development timelines, and reduces environmental impact. CoTec's
strategic model delivers low capital requirements, rapid revenue generation,
and high barriers to entry, positioning it as a leading mid-tier disruptor in
the commodities sector.

For more information, please visit www.cotec.ca.

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, 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 HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA LLC 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 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 availability of (or delays in obtaining) financing to
develop Songwe Hill, the Recycling Plants being developed by Maginito in the
UK, Germany and the United States (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, 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 press 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 because 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 CoTec, please contract:

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

braam.jonker@cotec.ca

+1 604 992-5600

 

For further information on Mkango, please contact:

 

Mkango Resources Limited

William
Dawes
Alexander Lemon

Chief Executive Officer                  President

will@mkango.ca
alex@mkango.ca

+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.

 

 i 
https://cotec.ca/news/maginito-secures-exclusive-agreement-with-inserma-to-commercialise-automated-pre-processing-of-hard-disc-drives-loudspeakers-and-electric-motors-for-hypromag

 ii  https://www.ukri.org/councils/innovate-uk/

 iii 
https://cotec.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of-recycled-rare-earths-magnets-for-the-united-states

 iv 
https://cotec.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further-expansion-and-complementary-long-loop-recycling

 v  Conventional leach, extraction purification and precipitation process

 vi 
https://cotec.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co2-footprint-of-235-kg-co2-eq-per-kg-of-ndfeb-cut-sintered-block

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