REG - Mkango Resources Ltd - OFFICIAL OPENING OF RECYCLING PLANT IN BIRMINGHAM

Mkango ResourcesAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260115:nRSO9541Oa&default-theme=true

RNS Number : 9541O  Mkango Resources Limited  15 January 2026

 MKANGO RESOURCES LTD.
 550 Burrard Street
 Suite 2900
 Vancouver
 BC V6C 0A3
 Canada

 

 

UK MINISTER FOR INDUSTRY OFFICIALLY OPENS RARE EARTH MAGNET RECYCLING AND
MANUFACTURING FACILITY AT TYSELEY ENERGY PARK, BIRMINGHAM

 

 

London / Vancouver: January 15, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") is pleased to announce the official launch of the rare earth magnet
facility today at Tyseley Energy Park (the "Facility"). The Facility has been
developed by the Magnetic Materials Group ("MMG") at the University of
Birmingham and constructed and commissioned alongside HyProMag Limited
("HyProMag"). The University of Birmingham and HyProMag today host the opening
of the Facility for separating and recycling rare earth magnets using the
patented Hydrogen Processing of Magnet Scrap ("HPMS") technology, licensed
exclusively to HyProMag. The Facility will be officially opened by Chris
McDonald MP, Minister for Industry in the Department for Energy Security and
Net Zero and the Department for Business and Trade.

The Facility at Tyseley Energy Park has enabled the first commercial rare
earth magnet production in the UK in 25 years - making it a key enabler of UK
Government's November 2025 Critical Minerals Strategy which sets targets for
the UK to meet 10% of annual critical mineral demand by domestic sources, and
20% to be met through recycling by 2035.

The Facility is the only commercial scale rare earth sintered magnet
manufacturing facility in the UK. HyProMag has successfully operated the
Facility as the industrial partner, utilising the HPMS technology to produce a
recycled NdFeB alloy powder, as well as having produced recycled NdFeB
sintered magnet blocks utilising the recycled alloy powder. The Facility can
recover over 400kg of rare earth alloy per batch utilising the HPMS reactor
and can produce new sintered magnets from the recycled rare earth alloy at a
capacity of 100 tonnes per annum on a single shift, and over 300 tonnes per
annum on multiple shifts. Rare earth elements are amongst the key critical
minerals featured in the UK's Critical Minerals Strategy, with their main
commercial use being in rare earth permanent magnets. These magnets are
required in electric vehicle traction motors and wind turbine generators, and
they are also a key component in electronic devices including mobile phones,
hard disk drives and loudspeakers, as well as being utilised in critical
sectors such as aerospace and defence.

William Dawes, Chief Executive of Mkango and Director of HyProMag commented:
"This is a landmark achievement and transformational for rare earth supply
chains, bringing back magnet manufacturing to the UK after 25 years and is
underpinned by a home-grown technology, HPMS, that not only delivers a cost
advantage, but has a minimal carbon footprint. Since Mkango's first investment
in HyProMag in 2020 and HyProMag UK's ongoing collaboration with the
University of Birmingham as the commercial partner and exclusive licensee, it
is fantastic to see HPMS technology progress to commercialisation with the
support of Innovate UK and ongoing collaboration with the University of
Birmingham and is a credit to the vision and determination of everyone
involved. This development provides a strong platform for further scale-up in
the UK and international roll-out, already underway in Germany and the USA,
with other countries being assessed for further expansion."

Nick Mann, Managing Director of HyProMag Ltd commented: "Since 2020 HyProMag
has been working closely with the University of Birmingham's Magnetic
Materials Group to further develop and commercialise their patented recycling
technology.  Hydrogen Processing of Magnet Scrap, exclusively licenced to
HyProMag, gives us the method to extract magnets from end of life applications
and recycle them into new magnets in a commercially viable and very low carbon
process.  Expansion of equipment and knowledge keeps pushing the boundaries
of what we are achieving and this commercial scale facility at Tyseley is no
exception, with results achieved in our commercial runs already exceeding
results at the pilot facility.  HyProMag are well placed to maximise this
opportunity and further develop magnet supply opportunities both in the UK and
overseas.  Our expanding team is excited by this next phase of our
development."

Allan Walton, Head of the Magnetic Materials Group at the University of
Birmingham and Founding Director of HyProMag Ltd, commented: "The first use of
hydrogen for recycling of magnets was proposed by the late Emeritus Professor
Rex Harris who started the recycling activities in the group over 20 years
ago. Since that time, the group has scaled multiple processes to sense, sort,
extract, purify, and recycle rare earth magnets. This has only been possible
because of the commitment of the highly skilled team within the MMG and due to
the large interdisciplinary projects the group has taken part in across the
rare earth value chain."

HyProMag Ltd is the main industrial partner for the project and the exclusive
HPMS licencee. HyProMag is 100% owned by Maginito Limited ("Maginito"), which
is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings ("CoTec").

In parallel with development of the UK Facility, HyProMag is rolling out HPMS
technology into Germany and the USA, and is also evaluating other
jurisdictions including Japan, Canada and South Korea. In Germany, HyProMag
GmbH ("HyProMag Germany") is constructing a rare earth magnet recycling and
manufacturing plant at Pforzheim (the "Pforzheim Plant").

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.
HyProMag USA LLC ("HyProMag USA") completed a feasibility study in 2024 for a
rare earth magnet recycling and manufacturing operation in USA, with the
HyProMag USA's first facility to be located at the Ironhead Commerce Center,
Dallas-Fort Worth, Denton County, Texas (the "Texas Hub") with detailed
engineering currently underway and first production targeted for mid-2027. 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. In
addition to the Texas Hub, HyProMag USA has also announced the completion of
expansion concept studies 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.

About Mkango Resources Ltd.

Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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 Limited 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%3Ablank)

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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAPFLFELKEFA



            Copyright 2019 Regulatory News Service, all rights reserved