REG - Mkango Resources Ltd - PILOT PLANT SUCCESSFULLY COMMISSIONED

Mkango ResourcesAnnouncement

01/07/2024 07:00

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RNS Number : 4812U  Mkango Resources Limited  01 July 2024

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

PILOT PLANT SUCCESSFULLY COMMISSIONED FOR LONG-LOOP RECYCLING OF RARE EARTH
MAGNETS

 

Highlights

·      Mkango Rare Earths UK has successfully commissioned a long-loop
recycling pilot plant at Tyseley Energy Park in Birmingham, which processes
NdFeB magnet scrap or swarf to produce rare earth carbonates and oxides via a
chemical route

·      Complements the short-loop recycling plant currently being
commissioned by HyProMag and University of Birmingham also at Tyseley Energy
Park, which processes NdFeB magnet scrap to produce rare earth alloys and
magnets

·      Both recycling processes are underpinned by the 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

London / Vancouver: July 1, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the
"Company" or "Mkango") is pleased to announce that Mkango Rare Earths UK
("Mkango UK") has successfully commissioned a pilot plant designed to produce
separated magnet rare earths (neodymium/praseodymium and dysprosium/terbium
carbonates or oxides) via a long-loop recycling process. Mkango UK is 100%
owned by Maginito Limited ("Maginito"), which is 79.4% owned by Mkango and
20.6% owned by CoTec Holdings ("CoTec").

The long-loop pilot plant received 70% of its funding from the UKRI's Driving
Electric Revolution Challenge, delivered by Innovate UK, as part of the
grant-funded project "Secure Critical Rare Earth Magnets for the UK" (SCREAM).
Project partners include HyProMag, Bowers & Wilkins, European Metal
Recycling (EMR), GKN Automotive, Jaguar Land Rover, and the University of
Birmingham.

William Dawes, Chief Executive of Mkango stated: "This is a significant
achievement for the Mkango UK team.  We considered it key to develop this
technical capability, given that some of the HPMS product not suitable for
short-loop magnet manufacture and all swarf produced by HyProMag will require
long loop chemical processing. This pilot plant enables us to determine the
cost structure and carbon footprint of the baseline process, enabling the
evaluation of different options for long-loop recycling on a commercial
basis."

Nielson Beddoe, Processing Engineering Manager of Mkango UK stated: "We're
very excited to have reached this major milestone. This is a credit to our
excellent technical team in Birmingham and we are looking forward to the next
steps as we progress through process optimization, scoping studies and
evaluation of bolt-on technology enhancements. The development of the
long-loop process enhances the technical flexibility to process different
scrap streams, including swarf, and to produce a range of rare earth products.
This strengthens ongoing customer engagement working closely with the HyProMag
team."

Professor Allan Walton, Head of the Magnetic Materials Group at University of
Birmingham and founding Director of HyProMag stated: "We are excited to see
this additional capability for long-loop chemical processing brought to
Tyseley Energy Park with the support of the University of Birmingham.
Commissioning of the short-loop recycling plant is gathering momentum
following commissioning of the commercial scale magnet manufacturing presses
in December last year, with infrastructure development starting in the coming
weeks, and delivery of the powder processing plant and HPMS vessel expected in
July and August, respectively."

Rare earth magnets play a key role in clean energy technologies including
electric vehicles and wind turbine generators, and they are also a key
component in electronic devices including mobile phones, hard disk drives and
loudspeakers. The UK has no domestic source of primary rare earths. The
development of domestic sources of recycled rare earths via HPMS, a homegrown
technology, is a significant opportunity for the UK to fast-track the
development of sustainable and competitive rare earth magnet production.

Both long-loop and short-loop recycling technologies are underpinned by the
patented HPMS technology developed at University of Birmingham, which
liberates magnets from end-of-life scrap streams in a cost effective and
energy efficient way to produce a recycled NdFeB alloy powder, which is
manufactured into a magnet (via the short loop process) or into a rare earth
carbonate or oxide (via the long loop chemical process).

Optimisation of long-loop pilot operations is underway, targeting near-term
pilot scale production of the first 50kg batch of rare earth carbonates and
oxides, in parallel with completion of scoping studies and evaluation of
options to advance long loop recycling via stand-alone development, joint
venture or other commercial arrangements. The long-loop recycling route is
used to process NdFeB HPMS powder not suitable for short-loop recycling or for
the processing of magnet swarf (i.e. the powder produced from grinding and
finishing magnets).

In parallel, commissioning of the commercial scale short-loop magnet recycling
plant by University of Birmingham and HyProMag (main industrial partner and
exclusive HPMS licencee) is underway.

HyProMag is also commercialising HPMS recycling technology in Germany and
United States, with commercial production targeted for 2025 and 2026,
respectively.

HPMS technology is 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 the solution.

HyProMag's HPMS recycling technology was selected by the Minerals Security
Partnership ("MSP") for support as one of its key projects. The technology was
selected because the MSP determined its strong potential to contribute towards
the development of responsible critical mineral supply chains.

The MSP was formed in 2022 by 14 governments and aims to ensure adequate
supplies of minerals such as rare earths to meet net zero-carbon goals. It
aims to support public and private sector investments building diverse,
secure, and responsible global critical minerals supply chains.

About Mkango

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, 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 HyProMag's 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 and an
extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt
exploration portfolio in Malawi, and the Pulawy rare earths separation project
in Poland. Discussions with the Government of Malawi in relation to the Mining
Development Agreement for Songwe Hill are ongoing.

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 the various recycling plants in the UK, Germany, governmental action
and other market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is researching and developing,
, 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, 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 plants of 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 Maginito'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.

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.ca

@MkangoResources

 

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Jeff Keating, Caroline Rowe, Kasia Brzozowska

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.

 

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