REG - Mkango Resources Ltd - HYPROMAG COMMISSIONING UPDATE FOR UK PLANT

Mkango ResourcesAnnouncement

24/07/2024 07:00

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RNS Number : 5497X  Mkango Resources Limited  24 July 2024

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

HYPROMAG COMMISSIONING UPDATE FOR THE UK'S FIRST COMMERCIAL SCALE RARE EARTH
MAGNET RECYCLING AND MANUFACTURING PLANT AT TYSELEY ENERGY PARK IN BIRMINGHAM

 

Highlights

·      Commissioning of the short-loop magnet recycling and
manufacturing plant at Tyseley Energy Park is continuing to advance with past
and upcoming major milestones as follows:

o  Magnet manufacturing presses delivered and commissioned in December 2023

o  Powder processing (sieving, blending, jet milling) plant delivered in July
2024

o  Hydrogen Processing of Magnet Scrap (HPMS) vessel expected to be delivered
in September 2024

o  Infrastructure development by the contractors expected to commence in
September 2024, with start-up of commercial operations now expected in Q1
2025

o  The permitting process for commercial operations is well underway and
proceeding as expected

·      The plant is being commissioned by the University of Birmingham
with the support of HyProMag, the main industrial partner for the project and
exclusive HPMS licencee

·      Initial commercial production is expected at an approximate rate
of 25 - 30 tonnes per year of recycled NdFeB based on 20% capacity utilisation
for the first few months, with approximately two months of NdFeB scrap supply
currently in inventory

·      The main commercial product will initially be a recycled NdFeB
alloy for magnet manufacturing or for chemical processing by third parties -
this will be supplemented with production of recycled sintered NdFeB magnet
blocks for product qualification purposes to support ongoing HyProMag customer
discussions and further scale-up

·      The product suite will have a minimal carbon footprint,
reflecting the highly energy efficient combination of HPMS with short-loop
magnet manufacturing, with typical product specifications to be issued by
HyProMag in due course

·      The production potential at Tyseley is significantly higher, with
potential for a minimum of 100-330 tonnes per year of recycled NdFeB at full
capacity, as well as opportunities to expand production of sintered blocks and
finished magnets, and significantly larger scale-up scenarios currently being
evaluated

London / Vancouver: July 24, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
(the "Company" or "Mkango") is pleased to provide an update on the
commissioning of the short-loop rare earth magnet recycling and manufacturing
plant at Tyseley Energy Park in Birmingham, UK. HyProMag limited ("HyProMag")
is the main industrial partner for the project and 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").

Start-up of commercial operations is expected in Q1 2025, subject to the
remaining equipment being delivered and infrastructure being installed by the
contractors on schedule, as well as completion of the permitting process. The
majority of equipment will initially be owned by the University of Birmingham
and utilised by HyProMag as the main industrial partner for the project and
exclusive HPMS licencee. HyProMag has ordered additional equipment to
debottleneck certain parts of the process and is evaluating further ways to
optimise and debottleneck the flow sheet.

William Dawes, Chief Executive of Mkango stated: "We are excited to see the
Tyseley development progressing towards commercial production, which will
underpin the international roll-out of HPMS technology into Germany, USA and
other jurisdictions such as Japan. Rare earth magnet recycling is a core focus
for Mkango and we are well positioned given our early move into the sector in
January 2020 when we initially invested in HyProMag. Apart from the capability
to develop bespoke recycling solutions for a range of end-of-life products, we
can offer customers a broad suite of recycled NdFeB products with a very low
carbon footprint, and as such we are receiving high levels of interest from
potential offtakers and partners."

Nick Mann, Managing Director of HyProMag stated: "In parallel with ongoing
commissioning at Tyseley, HyProMag has been continuing to utilise the existing
pilot facilities at University of Birmingham to expand the portfolio of magnet
grades achievable from end-of-life materials to underpin the transition to
commercial production. By the end of 2024, we are targeting production of over
10,000 finished recycled magnets from pilot operations covering a range of
grades for demonstration in a range of applications by a number of end users.
The whole team is excited to roll out this know-how to the commercial scale
equipment which is being commissioned at the Tyseley plant.  HyProMag is
proud to be making the UKs first domestically produced sintered magnets in
over twenty years."

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.

In parallel with the short-loop process being commercialised by HyProMag,
Maginito subsidiary, Mkango Rare Earths UK, recently commissioned a pilot
facility for long-loop chemical recycling of HPMS product not suitable for the
short loop process as well as swarf.

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).

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.

HyProMag is also commercialising HPMS recycling technology in Germany and
United States, with commercial production targeted for 2025 and 2026,
respectively. HyProMag is also evaluating other jurisdictions, and recently
launched a collaboration with Envipro on rare earth magnet recycling in Japan.

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.
HyProMag is also evaluating other jurisdictions, and recently launched a
collaboration with Envipro on rare earth magnet recycling in Japan.

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

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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