REG - Mkango Resources Ltd - HYPROMAG USA ADVANCES EXPANSION TO THREE STATES

Mkango ResourcesAnnouncement

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RNS Number : 4417O  Mkango Resources Limited  12 January 2026

 

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

 

 

FOLLOWING COMPLETION OF EXPANSION CONCEPT STUDIES HYPROMAG USA ADVANCES
EXPANSION TO THREE STATES SUPPORTING A PATH TO

TRIPLE U.S. RARE EARTH MAGNET CAPACITY BY 2029

 

·    Completed concept studies for expansion of South Carolina and Nevada
hubs, increasing total HyProMag USA magnet and alloy production from 1,552
metric tons NdFeB to 4,656 metric tons NdFeB per annum, supporting scalable
U.S. manufacturing strategy and reinforcing momentum towards a planned U.S.
public listing

·    Greater than $2 billion post-tax NPV and 38.7% real IRR for expanded
developments, based on forecast market prices i  (#_edn1) , support
commencement of pre-feasibility studies for the expansions

 

London / Vancouver: 12 January 2026 - Mkango Resources Ltd (AIM / TSX-V:MKA)
(the "Company" or "Mkango") is pleased to announce an update from HyProMag
USA, LLC ("HyProMag USA") on the completion of expansion concept studies (the
"Expansion Concept Study") and the commencement of pre-feasibility studies for
HyProMag USA's Plants located in South Carolina and Nevada, marking a
significant step toward tripling its domestic manufacturing capacity by 2029.
The studies support HyProMag USA's strategy to build a scalable platform
across the U.S. for recycled neodymium-iron-boron (NdFeB) magnets and
reinforce the Company's intention to pursue a U.S. public listing.

The basis of the expansion studies is the recently completed Class 2 AACE ii 
(#_edn2) capital cost estimate as part of the Detailed Engineering Design and
Value Engineering Phase (the "Detailed Design") of the Company's first
facility to be located at the Ironhead Commerce Center, Dallas-Fort Worth,
Denton County, Texas (the "Texas Hub" or the "Project"). iii  (#_edn3)

 

The Texas Hub 2025 Detailed Design base case was based on operating three
Hydrogen Processing of Magnet Scrap ("HPMS") vessels, with a post-tax Net
Present Value ("NPV") applying a 7% discount rate of $409 million based on
current market prices, and a post-tax NPV of $780 million based on forecast
prices.

 

The pre-feasibility studies for each of the South Carolina and Nevada hubs
will focus on site selection, saleable products and Project configuration,
optimal site layout, permitting, logistics, and technical marketing.

 

Key Highlights of the Expansion Concept Study

 

·    Expansion targets increase magnet and NdFeB Alloy Powder Production
capacity by 3x from 1,552 metric tons NdFeB to 4,656 metric tons NdFeB by 2029
across three hubs, in Texas, South Carolina, and Nevada.

·    Concept Study focused on the development of modular production
systems and evaluated three investment scenarios based on the following
modular configurations:

o  Case 1 - NdFeB Alloy Powder Production (HPMS iv  (#_edn4) only) - (Module
1)

o  Case 2 - NdFeB Alloy Powder Production + Sintered Block Production
(Modules 1 & 2)

o  Case 3 - Fully Integrated Production: NdFeB Alloy Powder Production +
Sintered Block + Magnet Finishing and Packaging (Modules 1, 2 and 3)

·    Each site was envisioned as a brownfield development with no space or
utility constraints, enabling optimized layouts and flexible future expansions

·    The studies included conceptual building layouts, building options,
environmental and permitting Roadmaps, Capital Cost Estimate (Class 4 AACE),
and the basis of estimate

·    Project schedule assumes the commissioning of three Plants between
2027 and 2029 and does not include an expansion of the Texas Hub

·    Conceptual valuation: Concept study results for rare earth magnet
recycling and manufacturing operations in the United States with a Texas Hub
supported by two additional hubs (Case 3) co-located with Intelligent
Lifecycle Solution ("ILS") sites in South Carolina and Nevada v  (#_edn5) :

o  $1,143 million post-tax NPV vi  (#_edn6) and 27.6% real internal rate of
return (IRR) based on current market prices vii  (#_edn7) (, viii  (#_edn8) )

o  $2,180 million post-tax NPV and 38.7% real IRR based on forecast market
prices ix  (#_edn9)

·    Increased magnet production capacity: 2,823 metric tons per annum of
recycled sintered neodymium-iron-boron ("NdFeB") magnets and 1,833 metric tons
per annum of associated NdFeB co-products (total payable capacity - 4,656
metric tons NdFeB) over a 40-year operating life from 2029.

·    Pre-feasibility study magnet optimization expected to increase higher
value sintered block production

·    Industrial and workforce impact: The Plants are expected to support
revitalization of the U.S. magnet sector and create circa 300 skilled magnet
manufacturing jobs

·    Feedstock security: Plants in South Carolina and Nevada are
co-located with ILS x  (#_edn10) facilities, expansions would be conditional
on securing adequate feedstock and offtake

·    Carbon profile: Independent ISO-compliant study for the Texas Hub
2024 feasibility study confirmed a very low-carbon footprint of 2.35 kg
CO(2)-eq per kg of NdFeB sintered block product  xi  (#_edn11)

·    Scoping Studies: led by PegasusTSI Inc. (U.S.) and BBA USA Inc.
(Canada), with support from HyProMag's international teams and the University
of Birmingham

Building Momentum Toward U.S. Commercial Scale

 

The Expansion Concept Study build on a series of recent milestones for
HyProMag USA, including detailed engineering and feasibility work on the Texas
Hub, execution of the site lease xii  (#_edn12) at the Ironhead Commerce
Center, and the Company's intention to pursue a U.S. public listing. Together
these developments reflect accelerating momentum as HyProMag USA advances
toward commercial operations and a scaled, manufacturing footprint across the
U.S.

 

In parallel, HyProMag USA is engaging with large technology and infrastructure
operators to support the growing need for secure, domestic recycling solutions
for magnet-bearing equipment used in hyperscale data centers and AI
infrastructure. The Company's modular, low carbon, magnet-to-magnet recycling
platform is designed to support end-of-life recovery of rare earth materials
from servers, storage systems, and related equipment, positioning HyProMag USA
as a preferred long-term recycling and manufacturing partner for hyperscale
customers as capacity expands in the United States.

 

Julian Treger, CoTec CEO commented: "The Expansion Concept Study demonstrates
that HyProMag USA's Texas Hub is not a one-off project, but the foundation of
a scalable U.S. manufacturing platform. The modular design allows us to
replicate capacity efficiently, optimize products for U.S. customers, and
accelerate domestic supply chain resilience. With the commissioning of
HyProMag plants in the United Kingdom and Germany, along with recent progress
on the Texas Hub, materially strengthens HyProMag USA's readiness for the next
phase of growth and capital markets engagement."

 

Will Dawes, Mkango CEO commented: "HyProMag USA continues to develop a strong
platform for further growth in the United States, and the recently completed
Expansion Concept Study  further validates the Company's business model and
strategic positioning. In parallel with commissioning of the plants in UK and
Germany, HyProMag USA is progressing rapidly towards first production in 2027,
making a significant contribution to development of robust rare earth supply
chains globally."

About HyProMag USA

 

HyProMag USA is developing advanced rare earth magnet recycling and
manufacturing operations to establish a secure domestic U.S. supply chain for
NdFeB magnets, essential components for AI infrastructure, defense systems,
robotics, electric vehicles, and advanced electronics. Leveraging the
revolutionary HPMS technology, developed over 15 years by the Magnetic
Materials Group at the University of Birmingham with more than $100 million in
R&D investment, the Company delivers faster magnet-to-magnet short-loop
recycling that uses 88% less energy and reduces carbon emissions by 85%
compared to conventional methods. HPMS accepts a wide range of magnet-bearing
feedstocks - including end-of-life EV motors, data-center, and industrial
equipment, consumer electronics, and manufacturing scrap - enabling recovery
of magnet-grade material without chemical processing. Selected by the U.S.
Department of State as a Minerals Security Partnership project, HyProMag USA
is targeting 10% of U.S. domestic magnet supply within five years, ensuring
supply chain security and resilience for technologies critical to national
defense and economic competitiveness.

 

Ownership

 

HyProMag USA LLC is owned 50:50 by 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 under
the name Mkango Rare Earths Limited.

For more information, please visit www.mkango.ca (about:blank)

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
"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

 

H&P Advisory Limited

 

Joint Broker

Andrew Chubb, Leif Powis, Jay Ashfield

UK: +44 20 7907 8500

 

 i  (#_ednref1) Forecast market prices ("Forecast Prices") are the prices for
all NdFeB products sold in the U.S, excluding residual scrap feed, with the
rare earth price component thereof derived from the latest rare earth oxide
price forecasts from Q4 (2025) Adamas Intelligence, over the life of the asset

 ii  (#_ednref2) Association for the Advancement of Cost Engineering (AACE) -
Class 2 Estimate

 iii  (#_ednref3)
https://hypromagusa.com/hypromag-usa-provides-positive-update-to-valuation-of-expanded-dallas-fort-worth-plant-and-commences-strategic-review-to-explore-a-u-s-listing/

 iv  (#_ednref4) Patented Hydrogen Processing of Magnet Scrap (HPMS)
technology developed at University of Birmingham, which liberates NdFeB
magnets from end-of-life scrap streams in a cost effective and energy
efficient way

 v  (#_ednref5)
https://hypromagusa.com/hypromag-usa-expands-feedstock-supply-agreementwith-global-electronics-recycler-intelligent-lifecycle-solutions/

 vi  (#_ednref6) 7% real discount rates. NPVs are calculated by discounting
real US dollar cash flows from 2026

 vii  (#_ednref7) Current market prices ("Current Prices") for all NdFeB
products sold in the U.S, excluding residual scrap, derived from updated U.S.
2024 price quotes, over the life of the asset

 viii  (#_ednref8) NPV does not include the economic benefit of any government
or state incentives, carbon pricing

 ix  (#_ednref9) Forecast market prices ("Forecast Prices") are the prices for
all NdFeB products sold in the U.S, excluding residual scrap feed, with the
rare earth price component thereof derived from the latest rare earth oxide
price forecasts from Q4 (2025) Adamas Intelligence, over the life of the asset

 x  (#_ednref10)
https://hypromagusa.com/hypromag-usa-expands-feedstock-supply-agreementwith-global-electronics-recycler-intelligent-lifecycle-solutions/

 xi  (#_ednref11)
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
(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)

 xii  (#_ednref12)
https://hypromagusa.com/hypromag-usa-finalizes-long-term-lease-for-dallas-fort-worth-rare-earth-magnet-recycling-and-manufacturing-hub/

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