REG - Mkango Resources Ltd - MKANGO RELEASES Q3 2025 RESULTS

Mkango ResourcesAnnouncement

01/12/2025 07:00

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RNS Number : 6369J  Mkango Resources Limited  01 December 2025

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

MKANGO RELEASES Q3 2025 RESULTS

 

London / Vancouver: 1 December 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA)
(the "Company" or "Mkango"), is pleased to announce that it has released the
financial statements and management's discussion and analysis ("MD&A") for
the 3-month period ending 30 September 2025. The reports are available under
the Company's profile on SEDARplus (www.sedarplus.com) and on the Company's
website (https://mkango.ca/investors/financials/
(https://mkango.ca/investors/financials/) ).

 

To view the Financial Statements, please click here
http://www.rns-pdf.londonstockexchange.com/rns/6369J_1-2025-11-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6369J_1-2025-11-30.pdf)

 

To view the Management Discussion and Analysis, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/6369J_2-2025-11-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6369J_2-2025-11-30.pdf)

 

HIGHLIGHTS AND RECENT MILESTONES

Balance Sheet

·    Cash position of US$2 million as at 30 September 2025 with a £3
million (US$4 million) successful equity raise in October 2025 post quarter
end.

Magnet Recycling & Manufacturing

·    Successful first production and commercial sales of recycled
neodymium iron boron ("NdFeB") alloy powder from Tyseley Energy Park ("TEP")
in the UK - equivalent to 3 tonnes of oxidized NdFeB alloy powder produced to
date, with first revenue to be reported in the year end results.

·    HyProMag UK continues to target production of 2 tonnes per month of
recycled NdFeB alloy powder and is evaluating phased expansion starting next
year, initially to 100-350 tonnes per annum ("tpa") of NdFeB alloys and
magnets and subsequently to 1,000 tpa.

·    First production runs of NdFeB magnet blocks have been completed post
quarter end at TEP following commissioning of the sintering furnace, with
magnet manufacturing operations to be scaled up over the coming months to
support product marketing and commercial sales of recycled magnets in parallel
with sales of NdFeB alloy powder.

·    Commissioning of key equipment at the HyProMag Germany recycling and
magnet manufacturing plant is targeted by the end of 2025, with first
production of NdFeB alloy powder expected in Q1 2026, subject to permitting.
HyProMag Germany is evaluating expansion options to 750 tpa from the currently
planned 100-350 tpa.

·    The HyProMag USA rare earth magnet recycling and manufacturing
project continues to advance through detailed engineering. The Notice to
Proceed ("NTP") for the project is expected in Q1 2026 with commissioning
targeted for mid-2027.

·    Inserma pre-processing units are being deployed across multiple
countries to provide a cost-effective and energy efficient automated circular
solution for recycling of NdFeB magnets and PCBs from end-of-life hard disk
drives, underpinned by a partnership with Intelligent Lifecycle Solutions
("ILS").

·    Other jurisdictions are being evaluated for HyProMag and Inserma
technology roll-out including Japan, Canada and South Korea.

 

Mkango Rare Earths Limited

·    In July 2025, Mkango Rare Earths Limited ("MKAR"), (formally known as
Lancaster Exploration BVI) and Crown PropTech Acquisitions ("CPTK") entered
into a Business Combination Agreement ("BCA") to form a pure-play global rare
earth platform expected to list on Nasdaq, including the advanced-stage Songwe
Hill rare earths project in Malawi ("Songwe") and the Pulawy rare earths
separation project in Poland ("Pulawy").

·    Mkango's pro forma shareholding (excluding its existing recycling
businesses) is valued at US$400 million prior to transaction expenses and
excluding any net proceeds from a PIPE financing and any amounts available
from CPTK's trust account.

·    On 29 September 2025, Mkango Rare Earths Limited entered into a
Project Development Funding Agreement with the U.S. International Development
Finance Corporation ("DFC") for US$4.6 million in reimbursable funding to
advance Songwe Hill.

 

HyProMag UK

In partnership with the University of Birmingham's Magnetic Materials Group
(MMG), HyProMag UK is developing the first commercial-scale rare earth magnet
recycling and manufacturing operation in the UK with commissioning of the
plant at the MMG site nearing completion.

 

The Hydrogen Processing of Magnet Scrap ("HPMS") vessel has been installed and
commissioned. Powder processing systems, including purification, jet milling
and blending equipment, are now operational. Installation of commercial
sintering capability is complete, with the first NdFeB magnet blocks produced
post quarter end and now undergoing characterisation.

 

Supply and offtake agreements have been signed and first NdFeB alloy powder
has been sold for long-loop chemical processing, representing the first
commercial sales from UK operations, with associated revenue to be reported in
the year end results.

 

The Company is evaluating a phased expansion starting next year, initially to
100-350 tpa of NdFeB alloys and magnets and subsequently to 1,000 tpa.

 Figure 1: HPMS vessel - Tyseley Energy Park, Birmingham, UK          Figure 2: Powder processing plant - Tyseley Energy Park, Birmingham, UK
 Figure 3: 50kg and 400kg sintering furnaces at Tyseley Energy Park,  Figure 4: First magnet blocks post sintering at Tyseley Energy Park,
 Birmingham, UK                                                       Birmingham, UK

 

HyProMag Germany

HyProMag Germany is progressing toward establishing a European manufacturing
hub for recycled rare earth magnets.

 

Installation of the HPMS vessel, sieve, blender and jet mill is complete and
ready for commissioning. A transverse alignment press is on site, and
sintering furnaces are due to arrive in December 2025. Completion and
certification of the axial alignment press are in the final stages, with
factory acceptance testing scheduled for December 2025. Orders for finishing
equipment and expanded sintering capacity will be placed before year-end.

 

Commissioning of both the HPMS vessel and jet mill is targeted by the end of
2025, with first production expected in Q1 2026, subject to permitting.

 

HyProMag Germany is evaluating expansion options to 750 tonnes per year from
the currently planned 100-350 tpa  - an updated 3D fly through for the
conceptual design can be accessed via the following link:
https://youtu.be/HFAY3YImPg0 (https://youtu.be/HFAY3YImPg0)

 

 Figure 5: HyProMag Germany premises - Pforzheim  Figure 6: HyProMag Germany - layout
 Figure 7: HyProMag Germany - installed jet mill  Figure 8: HyProMag Germany - installed HPMS vessel

 

HyProMag USA

During the third quarter, detailed engineering design continued and is now
more than 25% complete, on time and within budget and the scope of the Texas
hub has been extended to include three HPMS vessels in the recycling plant
compared to two included in the feasibility study. The third HPMS vessel will
increase production of associated NdFeB co-products from 291 tpa to
approximately 750 tpa.

 

HyProMag USA is evaluating the further expansion of the project through the
placement of two additional HPMS recycling and magnet manufacturing facilities
in South Carolina and Nevada respectively to triple the capacity of the
project. HyProMag USA has also commenced investigating the addition of a long
loop chemical processing plant which will be complementary to the short loop
process. The NTP for the project is expected in Q1 2026 with commissioning
targeted for mid-2027.

 

HyProMag USA entered into a feedstock supply and pre-processing site share
agreement with global electronics recycling company ILS. In terms of the
agreement, the project's pre-processing facilities will be based on the ILS
sites in South Carolina and Nevada and ILS will provide feedstock to HyProMag
USA. Stockpiling of end-of-life electronic scrap has commenced and to date,
ILS has engaged with several suppliers to establish consistent feed of
electronic scrap.

 

HyProMag USA has also purchased three Inserma and PCB machines for each of the
Texas, South Carolina and Nevada sites for pre-processing of the end-of-life
electronic scrap material. Delivery of these machines is expected prior to
year-end and is subsequently expected to accelerate the stockpiling by ILS.

The Project has received a Make More in America (MMIA) domestic finance letter
of interest ("LOI") from the U.S. Export-Import ("EXIM") Bank for its first
integrated rare earth recycling and magnet-making facility in Dallas-Fort
Worth, Texas. In terms of the letter, EXIM may be able to consider potential
financing of up to $92 million of the project's costs with a repayment tenor
of 10 years.

 

In addition to the EXIM LOI, discussions with two commercial banks in relation
to potential project finance for the project are progressing well and entering
the due diligence phase, whilst discussions with several US federal and state
government bodies to support funding and other incentive opportunities remain
ongoing.

 

SPAC TRANSACTION - MKANGO RARE EARTHS LIMITED

MKAR and CPTK have signed a BCA to form a global, vertically integrated rare
earth company with a focus on supplying mined, refined and separated rare
earth oxides to markets across North America, Europe and Asia.

 

Mkango's pro forma shareholding (excluding its existing recycling businesses)
is valued at US$400 million prior to transaction expenses and excluding any
net proceeds from a PIPE financing and any amounts available from CPTK's trust
account.

 

The transaction is expected to provide a strong financial platform to
accelerate the development of Mkango's key growth assets, including Songwe
Hill in Malawi and the Pulawy separation project in Poland.

 

The Company is currently finalising a revised NI 43-101 technical report and a
US SK-1300 technical report on Songwe Hill and a prefeasibility study on
Pulawy.  This will allow the finalisation and filing of a Form F-4
Registration Statement. Once the Registration Statement has become effective
with the U.S. Securities and Exchange Commission (currently anticipated to be
Q1 2026), CPTK will endeavour to obtain shareholder approval and the
transaction will proceed toward closing.

 

DFC PROJECT DEVELOPMENT FUNDING FOR SONGWE HILL

On 29 September 2025, Mkango Rare Earths Limited signed a Project Development
Funding Agreement with the U.S. International Development Finance Corporation
("DFC"), securing US$4.6 million in reimbursable funding to support key
technical, environmental, and permitting milestones at Songwe Hill. The DFC is
also evaluating a potential US$100 million direct loan, which would represent
a significant step toward enabling full project development financing.

 

The DFC's engagement further validates Songwe Hill's strategic importance to
global rare earth supply chains and is expected to complement Mkango's broader
financing strategy, including the proposed SPAC transaction.

 

APPOINTMENT OF JOINT BROKER

Mkango has appointed Hannam & Partners as joint broker and corporate
sponsored research provider, effective 1 December 2025. Together with joint
brokers, SP Angel Corporate Finance LLP and Alternative Resource Capital,
Hannam & Partners will support Mkango's strong growth profile developing
advanced stage projects across the rare earths supply chain.

 

London-based, Hannam & Partners is authorised and regulated by the
FCA. Under the terms of the agreement ("Agreement"), Hannam & Partners
will provide corporate broking and research services to the Company, and
provide general market intelligence, feedback on the market's view of the
Company and on market activity in the shares. The Agreement provides for an
annual fee of £50,000 per year in connection with the provision of research
services and runs for an initial term of 12 months with a one month notice of
termination provision.

 

Hannam & Partners and Mkango are unrelated and unaffiliated entities.
Hannam & Partners has confirmed to Mkango that it does not have any
interest, direct or indirect, in any securities of Mkango or a right to
acquire any such securities.

 

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 Ltd 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 Hydrogen Processing of Magnet Scrap
("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
and the Pulawy rare earths separation project in Poland. Both the Songwe and
Pulawy projects have been selected as Strategic Projects under the European
Union Critical Raw Materials Act. Mkango signed a business combination
agreement dated 2 July 2025  with CPTK to list the Songwe Hill and Pulawy
rare earths projects on NASDAQ via a SPAC Merger under the name Mkango Rare
Earths Limited.  Completion of the BCA remains subject to satisfaction of
certain conditions, including approval of the TSX-V.

 

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
"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. 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

 

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