REG - Mkango Resources Ltd - HYPROMAG TO COMMISSION SCOPING STUDY IN USA

Mkango ResourcesAnnouncement

04/09/2025 07:00

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RNS Number : 9352X  Mkango Resources Limited  04 September 2025

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

HYPROMAG USA TO COMMISSION SCOPING STUDY TO TRIPLE CAPACITY IN THE UNITED
STATES EXPANDING INTO NEVADA AND SOUTH CAROLINA

 

London / Vancouver: 4 September 2025 - Mkango Resources Ltd (AIM / TSX-V:MKA)
(the "Company" or "Mkango") is pleased to announce that US-based PegasusTSI
Inc. ("PegasusTSI") and Canada-based BBA USA Inc. ("BBA") have been engaged to
complete the HyProMag USA, LLC ("HyProMag USA") expansion concept study
("Concept Study" or "Project") for new Nevada and South Carolina rare earth
permanent magnet recycling plants in collaboration with global electronics
recycling company, Intelligent Lifecycle Solutions, LLC ("ILS"). The
expansions envisaged by the Concept Study would be completed concurrently with
the phased expansion of the first HyProMag USA facility located in Fort Worth,
Texas i  (#_edn1) (the "Texas Hub") to optimise the "hub and spoke"
configuration for rare earth magnet production and production of Hydrogen
Processing of Magnet Scrap ("HPMS") recycled NdFeB alloy powder.

The Concept Study will define the conceptual design and investment
requirements for new HyProMag facilities in Williston, South Carolina, and
Reno, Nevada. It will evaluate site suitability, logistics, scope of
developments, infrastructure and environmental assessment, while confirming
additional HPMS processing capacity to support up to four additional magnet
production lines. The Project will provide an AACE ii  (#_edn2) Class V CAPEX
estimate and will incorporate the current advanced design of the HyProMag USA
facility located in Fort Worth, Texas.

 

Julian Treger, CEO of CoTec, commented: "We are very excited to begin formally
expanding and optimising the footprint of HyProMag USA to Nevada and South
Carolina collaborating with our partner, ILS. HyProMag USA's NPV for the Texas
hub is circa $600 million based on recent expansion plans, and the economics
of expanding the hubs are linear which provides a potential 3x increase in
Company value with additional hubs.

Furthermore, given the recent strong increase in the price of rare earths and
their associated magnets, the valuation of the Company continues to strengthen
as detailed engineering, supply of feedstock and offtake discussions continue
at pace. With the recent significant steps by the U.S. Government to support
domestic supply and reshoring of rare earth magnet production, HyProMag USA is
well positioned to support U.S. demand growth with commercial operations
targeted in H1 2027. HyProMag USA continues to develop strategic partnership
discussions with all stakeholders to accelerate financing, commissioning and
product verification timelines."

Will Dawes, CEO of Mkango, commented: "Momentum continues to gather for
HyProMag USA with detailed engineering progressing well, and we are very
excited to be pushing forward with the Concept Study for the expansion
Project. This Project can unlock significant additional value for the group
and help catalyze further development of a robust domestic ecosystem for rare
earth magnet recycling and manufacturing in the United States. We look forward
to continuing to work with the Project team as we move to the next stage of
development.

 

 

HyProMag USA Feasibility Study

The Feasibility Study includes the Texas Hub, and two pre-processing
facilities located in South Carolina and Nevada respectively(( iii  (#_edn3)
)). In March 2025, HyProMag USA announced the expansion of the detailed
engineering phase to include three HPMS vessels(i) and that it was initiating
concept studies for further expansion and complementary "Long-Loop"
recycling(( iv  (#_edn4) )). The Texas 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 revitalizing 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. v  (#_edn5)

In August 2025, HyProMag USA announced ILS had formally commenced its
stockpiling of feedstock vi  (#_edn6) initiative pursuant to the recently
announced feedstock supply and pre-processing site share agreement between
HyProMag USA and ILS. vii  (#_edn7)

About HyProMag USA

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB:
CTHCF) ("CoTec") and HyProMag Limited. HyProMag Limited is 100 per cent owned
by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango
Resources Ltd. (AIM/TSX-V: MKA) and CoTec.

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 (about:blank)

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
"targeted", "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, and the various recycling plants in the UK, Germany and
the US as well as the separation plant in Poland, 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 various recycling plants in the UK, Germany
and the US as well as the separation plant in Poland, 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 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 various recycling and
separation plants of Mkango and Maginito and future investments in the United
States pursuant to the 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 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.

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.

 

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.com (http://www.mkango.com)

@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 (020) 4530 9160/77

 

 i  (#_ednref1)
https://mkango.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further/

 ii  (#_ednref2) Association for the Advancement of Cost Engineering (AACE)

 iii  (#_ednref3)
https://mkango.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of/

 iv  (#_ednref4) Conventional leach, extraction purification and precipitation
process

 v  (#_ednref5)
https://mkango.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-2-sub-footprint-of-2.35-kg-co-sub/

 vi  (#_ednref6)
https://mkango.ca/news/hypromag-usa-commences-stockpiling-of-feedstock/

 vii  (#_ednref7)
https://mkango.ca/news/hypromag-usa-enters-into-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions-for-feedstock-supply-and/

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