REG - Mkango Resources Ltd - YEAR END 2025 FINANCIAL STATEMENTS AND DFS

Mkango ResourcesAnnouncement

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RNS Number : 7686C  Mkango Resources Limited  01 May 2026

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

MKANGO RELEASES YEAR END 2025 FINANCIAL STATEMENTS AND FILES NI 43-101
DEFINITIVE FEASIBILITY STUDY REPORT FOR THE SONGWE HILL RARE EARTHS PROJECT IN
MALAWI

 

London / Vancouver: 1 May 2026 - 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 period ended 31 December 2025 and has filed on SEDAR+ a Technical Report
(the "Report") prepared in compliance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") in relation to the
Definitive Feasibility Study for the Songwe Hill Rare Earths Project in Malawi
announced on 19 March 2026. The Financial Statements, MD&A and the Report
are available under the Company's profile on SEDAR+ (www.sedarplus.com) and on
the Company's website (https://mkango.ca/investors/financials/
(https://mkango.ca/investors/financials/) ) (in respect of the Financial
Statements and MD&A).

 

To view the Financial Statements, please click here
[http://www.rns-pdf.londonstockexchange.com/rns/7686C_1-2026-5-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7686C_1-2026-5-1.pdf) ]

 

To view the Management Discussion and Analysis, please click here
[http://www.rns-pdf.londonstockexchange.com/rns/7686C_2-2026-5-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7686C_2-2026-5-1.pdf) ]

 

2025 HIGHLIGHTS AND RECENT MILESTONES

·      Cash position of US$3.1 million as at 31 December 2025.
Subsequent to the year end, the Company raised net proceeds of £11.7 million
(approximately $15.5 million) through the issuance of 37,878,788 common shares
of the Company at a price per share of 33 pence (approximately $0.44).

Rare Earth Magnet Recycling and Manufacturing Projects

HyProMag Ltd (UK)

·      First production runs of recycled neodymium iron boron ("NdFeB")
alloy powder from the commercial scale Hydrogen Processing of Magnet Scrap
("HPMS") vessel at Tyseley Energy Park ("TEP") in Birmingham, UK, were
announced in July 2025, with 9.2 tonnes produced to date, of which 7.4 tonnes
has been shipped to customers.

·      The TEP plant was officially opened by Chris McDonald MP, UK
Minister for Industry in the Department for Energy Security and Net Zero and
the Department for Business and Trade in January 2026.

·      Evaluation is underway for a phased expansion of capacity
starting next year, initially to 100-350 tpa of NdFeB alloys and magnets and
subsequently to 1,000 tpa.

·      Pre-processing of hard disk drives ("HDD") commenced at TEP
utilising the recently commissioned automated pre-processing unit, developed
and manufactured by Inserma Anoia S.L. ("Inserma Unit"), which provides both
magnet feedstock for HPMS processing and the opportunity for automated
recovery of printed circuit board assemblies as per the following video:
HyProMag UK - Inserma HDD Pre-processing Unit
(https://vimeo.com/1171082625?fl=ip&fe=ec)

·      HyProMag is engaging with multiple customers, with collaborations
including Siemens AG, which has incorporated recycled NdFeB magnets produced
by HyProMag into a SIMOTICS servomotor rotor recently presented at Hannover
Messe 26 as follows: Hannover Messe 26 Siemens
(https://www.youtube.com/live/Rn3uqGLRH2w?si=ncm5qScMKw5guT84&t=26722)

 

Left: Finished coated recycled NdFeB magnets for prototype demonstrations in
medical devices.

Right: Mkango, HyProMag, and University of Birmingham colleagues at the
opening  ceremony of the magnet manufacturing facility at TEP.

 

HyProMag GmbH (Germany)

·      First commissioning runs of recycled NdFeB alloy powder from the
commercial scale HPMS vessel at HyProMag's plant site in Pforzheim, Germany,
were announced in April 2026. The site is fully permitted for production of up
to 750 tonnes per annum of NdFeB magnets and alloys.

·      The plant was officially opened by the German Federal Ministry
for Economic Affairs on 28 April 2026, with the opening ceremony presided over
by Stefan Rouenhoff, Parliamentary State Secretary of the Federal Ministry for
Economic Affairs and Energy.

·      On 27 April 2026, the bilateral Germany-UK Business Government
Forum took place in Berlin, where Katherina Reiche, Federal Minister for
Economic Affairs and Energy of Germany and The Right Honourable Peter Kyle MP,
Secretary of State for Business and Trade for the United Kingdom signed a
Joint Statement on cooperation on Critical Raw Materials with HyProMag
featuring explicitly in the declaration as follows: Joint Statement of the
Department for Business and Trade of the United Kingdom and the Federal
Ministry for Economic Affairs and Energy of Germany on cooperation on Critical
Raw Materials
(https://www.bundeswirtschaftsministerium.de/Redaktion/DE/Downloads/J-L/20260427-joint-statement-on-critical-raw-materials.pdf?__blob=publicationFile&v=6)

·      Once fully commissioned, the Plant will have a minimum initial
capacity of approximately 100 tonnes per annum of NdFeB increasing to up to
circa 350 tonnes per annum with multiple shifts. A further expansion to a
targeted 750 tonnes per annum is under evaluation.

·      HyProMag is engaging with multiple customers for NdFeB alloy
powder and magnets on an ongoing basis to support the scale-up of operations.

 

Left: William Dawes, Chief Executive Officer, Mkango makes closing remarks at
the HyProMag opening ceremony in Pforzheim.

Right: Dignitaries cutting the ribbon at the HyProMag plant opening ceremony
in Pforzheim.

HyProMag USA

·      A lease agreement for HyProMag USA's proposed rare-earth magnet
recycling and manufacturing facility in Dallas-Fort Worth, Texas was signed in
December 2025. The site, located at the Ironhead Commerce Center, Building 1,
is strategically located next to critical infrastructure, including the BNSF
intermodal rail link and the Alliance airport as illustrated in the following
fly through video: https://www.youtube.com/watch?v=xNmJF3Hh1Mk
(https://www.youtube.com/watch?v=xNmJF3Hh1Mk)

·      In December 2025, HyProMag USA announced expansion of magnet
capacity and completion of an updated Class 2 AACE capital cost estimate as
part of Detailed Engineering Design and Value Engineering Phase activities,
which confirmed materially improved project economics and valuation.

·      US$409 million post-tax Net Present Value ("NPV") and 27.6% real
internal rate of return ("IRR") based on current market prices

·      US$780 million post-tax NPV and 38.7% real IRR based on forecast
market prices

·      Concept studies for expansion of the South Carolina and Nevada
hubs were announced in January 2026, which would increase 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, support commencement
of pre-feasibility studies for the expansions

·      HyProMag USA entered into an agreement with global electronics
recycler, Intelligent Lifecycle Solutions, in July 2025 for feedstock supply
and pre-processing site share in Nevada and South Carolina, with Inserma Units
commissioned in South Carolina in March 2026.

 

Upstream Rare Earths Projects

·      Mkango filed a Technical Report (the "Report") under NI 43-101 in
relation to the Definitive Feasibility Study ("DFS") for the Songwe Hill Rare
Earths Project ("Songwe" or the "Project") in Malawi, previously announced on
March 19, 2026. The press release in relation to the DFS update is available
to be downloaded from Mkango's website via the following link: Mkango
Announces Results of Updated Feasibility Study for the Songwe Hill Rare Earths
Project in Malawi
(https://mkango.ca/news/mkango-announces-results-of-updated-feasibility-study-for-the-songwe-hill-rare-earths-project-in-malawi-and-pre-feasibility/)
. The Report is available to be downloaded from Mkango's profile on SEDARplus
(https://www.sedarplus.ca (https://www.sedarplus.ca) ).

 

·      The Company's subsidiary Mkango Rare Earth Limited ("MKAR") has
confidentially submitted a draft registration statement on Form F‑4 to the
U.S. Securities and Exchange Commission in connection with the previously
announced proposed business combination with Crown PropTech Acquisitions
("CPTK"). The implied pro forma valuation of Mkango's shareholding in MKAR is
$400 million, excluding the effects of MKAR's indebtedness, closing cash,
transaction expenses, certain investments from CPTK's sponsor and affiliate,
any net proceeds from a PIPE financing, and amounts remaining in CPTK's trust
account.

 

·      Results of the updated DFS for Songwe were issued in March 2026.
Songwe's post-tax net present value ("NPV") is approximately $339 million,
using a 10% nominal discount rate, with an internal rate of return ("IRR") of
24%, payback period of 3.4 years from start of full production and post-tax
life-of-operations nominal cash flow of $1.55 billion.

 

·      Results of a pre-feasibility study ("PFS") for the proposed
Puławy Rare Earths Separation Plant ("Puławy") in Poland were issued in
March 2026 alongside the Songwe DFS update. Pulawy's post-tax NPV is
approximately $779 million, using a 10% nominal discount rate, with an IRR of
40%, payback period of 3.4 years from start of full production and a post-tax
life-of-operations nominal cash flow of $4.95 billion.

 

·      Applying Adamas Intelligence upside forecasts i , Songwe's
post-tax NPV increases to approximately US$489 million with a nominal IRR of
29%, payback period of 2.9 years from start of full production and post-tax
life-of-operations nominal cash flow of $2.04 billion while Puławy's expanded
100% neodymium/praseodymium ("NdPr") separation case rises to a post-tax NPV
of approximately US$892 million and nominal IRR of 43%, payback period of 1.89
years from start of full production and post-tax life-of-operations nominal
cash flow of $5.58 billion.

 

·      MKAR entered into a Project Development Funding Agreement with
the U.S. International Development Finance Corporation, to secure $4.6 million
in reimbursable funding for Songwe in September 2025. The funds are expected
to support the Front-End Engineering and Design (FEED) and value engineering
studies.

·      In December 2025, the now Senior Bureau Official leading the U.S.
Department of State's Bureau of African Affairs, Nick Checker, visited Songwe
alongside colleagues from the U.S. Embassy in Malawi and the International
Finance Corporation.

Left: Senior Bureau Official, Nick Checker and Mkango President, Alexander
Lemon, at Songwe Hill on a site visit.

Right: Songwe Hill in the background.

 

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 Limited
("Maginito"), which is owned 79.4 per cent by Mkango and 20.6 per cent by
CoTec Holdings Ltd ("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 expanding HPMS recycling technology into the
United States via the 50/50 owned HyProMag USA joint venture company.

Mkango currently owns 100% of the advanced stage Songwe Hill rare earths
project in Malawi and the proposed Puławy rare earths separation plant in
Poland. Both the Songwe and Puławy projects have been selected as Strategic
Projects under the European Union Critical Raw Materials Act. Songwe has also
received Development Funding from the U.S. International Development Finance
Corporation (DFC), the U.S. Government's development finance institution,
securing US$4.6 million in reimbursable funding for Front End Engineering and
Design. Mkango signed a Business Combination Agreement with Crown PropTech
Acquisitions to list the Songwe Hill and Puławy rare earths projects on
NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.

For more information, please visit www.mkango.ca (https://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
"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 including statements regarding Mkango's corporate
strategy. 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 proposed Pulawy separation plant in Poland, the
ability to secure and maintain valid mining rights, permits and licenses in
respect of Songwe Hill and Pulawy, the ability to obtain feedstock for Pulawy
from sources other than Songwe Hill, changes to cost of production from what
is assumed, unrecognized environmental risks, unanticipated reclamation
expenses, unexpected variations in throughput, grade or recovery rates,
failure of plan, equipment or processes to operate as anticipated, changes to
assumptions as to the availability of electrical power and the power rates
used in the operating cost estimates and financial analysis, ability to
maintain the social licence to operate, accidents, labour disputes and other
risks of the industry, changes to interest rates, changes to tax rates,
ability to secure offtake and supply agreements with the government of Poland,
the potential for the owner of the land on which the proposed Pulawy plant its
to be build terminating thee lease, the ability of Polska to obtain the
necessary permits to construct the Pulawy plant, competition from existing and
new competitors, an increase in the global supply of rare earth oxides or
dumping, predatory pricing and other tactics by Mkango's competitors, the
recycling plants being developed by Maginito in the UK, Germany and the US
(the "Maginito Recycling Plants"), 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 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 Maginito's 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 Maginito Recycling Plants and Pulawy, and future
investments in the United States pursuant to the cooperation agreement between
Maginito and CoTec, cost overruns, complexities in building and operating the
plants, the positive results of feasibility studies on the various proposed
aspects of Mkango's and Maginito's activities, political and economic
uncertainty in the jurisdictions in which the Company operates and the impact
of the war in Iran. 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 assumes no obligation to update
or revise any forward-looking statements, whether because 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.com

@MkangoResources

 

Montfort Communications

Ann-marie Wilkinson, Jack Hickman

UK: +44 20 3514 0897

mkango@montfort.london

 

SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker

Caroline Rowe, Jen Clarke, Devik Mehta

UK: +44 20 3470 0470

 

Alternative Resource Capital

Joint Broker

Alex Wood, Keith Dowsing

UK: +44 20 4530 9160/9177

 

H&P Advisory Limited

Joint Broker

Andrew Chubb, Leif Powis, Jay Ashfield

UK: +44 20 7907 8500

 

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.

 

 i  Recent REO price movements have driven Nd & Pr oxide prices to levels
broadly aligned with Adamas Intelligence's Q4 2025 base case pricing report
for 2028 and upside case for 2030-2031, providing support for the forecast
scenario.

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