REG - Mkango Resources Ltd - HYPROMAG ADVANCES UK MAGNET MANUFACTURING

Mkango ResourcesAnnouncement

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RNS Number : 5546B  Mkango Resources Limited  23 April 2026

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

 

 

HYPROMAG ADVANCES UK MAGNET MANUFACTURING AND CUSTOMER COLLABORATIONS

 

London / Vancouver: April 23, 2026 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
("Mkango") is pleased to provide an update on its subsidiary, HyProMag Ltd
("HyProMag") and the commercial scale rare earth magnet recycling and
manufacturing facility at Tyseley Energy Park ("TEP"), which utilises the
patented Hydrogen Processing of Magnet Scrap ("HPMS") technology, developed at
the University of Birmingham ("UoB"). In parallel with continued commissioning
and scale-up of the magnet manufacturing facility at TEP, HyProMag is engaging
with multiple potential magnet customers, and has achieved significant
technical milestones, underpinning the transition to commercial magnet
production.

Highlights

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

·    In parallel with supply of magnet samples to multiple customers,
HyProMag has produced  9.2 tonnes of recycled NdFeB alloy powder to date
following commissioning of the HPMS vessel last year, of which 7.4 tonnes has
been shipped to customers.

·    Pre-processing of hard disk drives ("HDDs) has commenced, utilising
the recently commissioned automated pre-processing unit at TEP, developed and
manufactured by Inserma Anoia S.L., and announced on March 9th: UK Inserma
Commissioning
(https://mkango.ca/site/assets/files/5109/20260306-inserma-commissioning-uk.pdf)

·    The first full batch of HDD-derived magnet scrap feedstock is ready
for HPMS processing, and processing of HDDs will be scaled up over the coming
months. Printed circuit board assemblies are also being recovered by the
Inserma units from the HDDs during pre-processing.

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

·    Successful grant funding application under the DRIVE35 Competition
will assess the 1,000 tpa scale-up through a Feasibility Study with further
details to be announced in due course.

·    In parallel, the recently announced grant funded REACT UK project
targets automotive magnet grades with project partners Mkango Rare Earths UK,
EMR Group, Jaguar Land Rover, Less Common Metals, and the University of
Birmingham, providing a clear pathway to an expanded product suite.

 

William Dawes, Chief Executive of Mkango commented: "HyProMag is uniquely
positioned to fulfil customer requirements for recycled rare earth magnets
across Europe and North America, underpinned by operations in UK, Germany and
USA, longstanding expertise in magnetic materials at the University of
Birmingham, extensive industry partnerships and the capability to make
commercial grade magnets across a growing range of applications. The
collaboration with Siemens is one example of win-win partnerships being
developed by HyProMag, and we are engaging with multiple potential customers
across a range of industries. Mkango aims to provide a one-stop-shop solution
for primary and secondary rare earth products across the supply chain, coupled
with competitive technology solutions for rare earth magnet recycling via
HyProMag and Inserma."

Nick Mann, Managing Director of HyProMag Ltd commented: "The HyProMag team
continues to develop and grow, with increasing quantities and types of NdFeB
outputs produced at the plant.  It is exciting times in Birmingham as this
expansion continues through 2026, allowing us to also assist the development
of our sister plants in Pforzheim, Germany and Dallas Fort-Worth, USA. It was
a pleasure to participate with Siemens at Hannover Messe 26 earlier in the
week, and we look forward to working closely with the Siemens team as we
advance our collaboration."

Siemens AG Collaboration

HyProMag and Siemens AG are working in close collaboration to close the loop
on circularity. The companies are focused on transforming old magnets into new
high-performance components for a sustainable industrial future. On 21 April
2026 at Hannover Messe 26, a SIMOTICS servomotor rotor was presented which had
been manufactured by Siemens utilising recycled NdFeB magnets produced by
HyProMag. These servomotors are utilised in a wide range of applications,
including in robotics, tooling machines, and packing machines, where high
dynamic performance, precise positioning, and speed control are essential.

 

 

 

 

 

 

 

 

 

 

 

Left: Nick Mann, Managing Director of HyProMag (left) speaks at Hannover Messe
26 alongside Cedric Bardenhagen, Sustainability Manager, Motion Control,
Siemens (centre) and Tobias Grimm, Sustainability Expert, Motion Control,
Siemens (right) during the presentation of the SIMOTICS servomotor rotor
produced by Siemens with HyProMag's recycled magnets.

Right: Two Siemens SIMOTICS servomotor rotors, one of which was produced
utilising recycled NdFeB magnets manufactured by HyProMag.

Product Development

HyProMag's product suite of short-loop recycled magnets continues to attract
strong interest. Magnet samples have been provided to over 20 potential
customers, with magnet qualification processes and offtake discussions
expected to further accelerate once the remaining magnet manufacturing
equipment at TEP is fully commissioned by the University of Birmingham in the
coming months. In 2026, magnets produced by HyProMag have been supplied for
qualification in motors, medical devices and audio products. HyProMag
continues to work closely with potential customers on prototyping and the
validation of magnets, with 200 pieces released from HyProMag's machining
partner this month. Development work with a coating supplier of both blue
zinc, and nickel-copper-nickel ("Ni-Cu-Ni") coating processes, is now
approaching completion. Finished magnets have been produced from NdFeB
sintered blocks, with two examples shown below.

 

 

 

 

 

 

 

 

 

 

 

Left: Finished magnets for prototype demonstration in medical devices

Right: Finished ring-shaped magnets in both blue zinc and Ni-Cu-Ni coatings

 

Utilisation of the commercial scale equipment at TEP has led to an increased
volume of samples sent to potential customers for demonstration, while future
grade development occurs simultaneously. HyProMag continues to increase its
customer offering, with advancements in blending, purification and powder
processing all resulting in enhanced magnet production. Quality control on
machined batches demonstrate strong consistency.

NdFeB Grade Range Development

Given high customer demand for increased coercivity grades, particularly for
automotive applications, HyProMag is responding by accelerating the timeline
for incorporation of grain boundary diffusion ("GBD") and the blending of
virgin material. Development of these capabilities aligns with future
commercialisation opportunities and the wider HyProMag group roadmap. The
recently announced grant-funded REACT UK project brings together a strong UK
consortium led by HyProMag to recover, recycle and remanufacture NdFeB magnets
from end-of-life hybrid and electric vehicles. By combining advanced recycling
routes, innovative hydrogen-based processing, and the incorporation of GBD,
the project aims to deliver high performance automotive magnet grades while
improving sustainability, resilience, and security of supply.

 

 

 

 

 

 

 

 

 

Above: NdFeB grades achieved (green) by HyProMag using recycled feedstock,
expected grades achievable in the near-term (yellow), and future grades
targeted with inclusion of GBD and virgin material blending (orange).

Successful Grant Funding

HyProMag was successful on two grant funding opportunities facilitated by the
Advanced Propulsion Centre ("APC"). The first grant is for the REACT UK
project, a Collaborative Project under the DRIVE35 R&D Competition, which
aims to establish and deliver a full circular economy for NdFeB magnets used
in the automotive sector. Project partners include HyProMag, Mkango Rare
Earths UK, EMR Group, Jaguar Land Rover, Less Common Metals, and the
University of Birmingham: HyProMag and Mkango Rare Earths UK to Collaborate in
Major New Grant Funded Project
(https://mkango.ca/news/hypromag-and-mkango-rare-earths-uk-to-collaborate-in-major-new-grant-funded-project-to-develop-recycled-magnets-for-high-grade/)
.

The second grant is designed to support detailed feasibility studies into the
deployment of UK based manufacturing facilities for zero emission vehicle
technologies and will support evaluation of scale-up of operations to 1,000
tpa at TEP. Further details will be announced as they become available.

Option Exercise

Mkango has received an exercise notice from a Mkango option holder to exercise
350,000 options over common shares in the Company, at a price of C$0.185 per
common share. Accordingly, the Company will issue 350,000 common shares
("Option Shares") to satisfy this exercise.

The Option Shares will rank pari passu with the Company's existing shares and
application has been made for the Option Shares to be admitted to trading on
AIM ("Admission"). It is expected that Admission will become effective and
dealings in the Option Shares will commence at 8:00 am on or around 28 April
2026. The Option Shares will also be listed for trading on the TSX-V.

In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R)
the Company hereby notifies the market that immediately following Admission,
its issued and outstanding share capital will consist of 387,460,284 shares.
The Company does not hold any shares in treasury. Shareholders may use this
figure as the denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their interest
in, the Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.

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

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. 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, 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 proposed cooperation
agreement between Maginito and CoTec, cost overruns, complexities in building
and operating the plants, and the positive results of feasibility studies on
the various proposed aspects of Mkango's and 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 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

Chief Executive Officer

will@mkango.ca (mailto:will@mkango.ca)
 

 

Alexander Lemon

President

alex@mkango.ca (mailto:alex@mkango.ca)

 

Canada: +1 403 444 5979

www.mkango.ca (http://www.mkango.ca)

@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.

 

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