REG - Mkango Resources Ltd - HYPROMAG TO COLLABORATE WITH ENVIPRO

Mkango ResourcesAnnouncement

10/06/2024 07:00

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RNS Number : 6912R  Mkango Resources Limited  10 June 2024

 

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street
 

Suite
2900
 

Vancouver
 

BC V6C
0A3
 

Canada
 
 

 

HYPROMAG TO COLLABORATE WITH ENVIPRO, A LEADING RECYCLING AND MATERIALS

TRADING COMPANY IN JAPAN

 

 

Highlights

·      HyProMag has launched a collaboration with Envipro on rare earth
magnet recycling in Japan and the United Kingdom - Mkango has a 79.4% indirect
interest in HyProMag, via Maginito

·      Envipro was established in 1950 and is a leading recycling and
materials trading company, listed on Tokyo Stock Exchange and based in
Shizuoka, Japan, with 2023 sales of over US$300 million, handling scrap
volumes of 625,000 tonnes, and a global footprint including the United Kingdom

·      The collaboration encompasses the following:

o  Joint marketing of HyProMag recycling technology solutions and recycled
magnets in Japan

o  Recycling trials to be carried out in UK and Japan on NdFeB scrap supplied
by Envipro

o  Analysis of the NdFeB scrap supply market and offtake opportunities in
Japan

o  Collaboration on potential HyProMag recycling technology development in
Japan.

·      Mkango continues to evaluate opportunities to expand its
interests in rare earth magnet recycling globally through joint ventures,
collaboration, marketing and offtake agreements.

London / Vancouver: June 10, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA)
(the "Company" or "Mkango") is pleased to announce that pursuant to a
non-binding Memorandum of Understanding ("MoU"), HyProMag Limited ("HyProMag")
has launched a collaboration with Envipro Holdings Inc. ("Envipro") on rare
earth magnet recycling in Japan and the United Kingdom (the "Collaboration").

 

Will Dawes, Chief Executive of Mkango stated: "This is the first step in the
roll out of HyProMag's rare earth magnet recycling technology into Japan and
other Asian markets, and we are very excited to work with Envipro. We see
Japan as a major growth opportunity for Mkango and HyProMag, given its
substantial and longstanding rare earth market presence and strategic
alignment with the development of more robust rare earth supply chains and the
objectives of the Minerals Security Partnership, of which Japan is a member."

Dave Kennedy, Director of HyProMag stated: "Japan has been at the forefront of
developments in the application of sintered NdFeB magnet applications since
the invention of this magnet type by Sagawa at Sumitomo Special Metals in
1983. Very little end of life recycling has been achieved in the intervening
years and we are pleased to be working with Envipro to unlock the potential
for recovering critical resources in Japan."

 

Shinobu Tachibana, Envipro Holdings Inc. NEWSCON INC. UK representative
stated: "Envipro is a global-scale recycling company, developing
state-of-the-art-technologies and know-how in the recycling sector. Our goal
is to help transform the societies from a linear economy to a circular model.
Japan has many industries that use NdFeB magnets in their products, however,
recycling of NdFeB magnets has been very limited to date because conventional
recycling processes for NdFeB magnets, being de-magnetising, shredding,
sorting, and wet metal smelting, are very costly, inefficient and
environmentally unfriendly. HPMS is a revolutionary technology for both
recycling and re-manufacturing of NdFeB magnets, which provides solutions for
these cost and efficiency challenges. Envipro and HyProMag will collaborate on
engagement with potential Japanese customers to further the development of
HPMS technology in Japan and adopt it for the recycling of rare-earth
materials in their products."

 

HyProMag is commercialising Hydrogen Processing of Magnet Scrap ("HPMS")
recycling technology in the UK, Germany and United States. HPMS technology was
developed at the University of Birmingham, 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.

Near term milestones for the recycling business include full commissioning of
the short-loop HPMS recycling plant in the UK with initial commercial sales of
NdFeB by HyProMag targeted for H2 2024, commissioning of the pilot scale
(long-loop, chemical route) recycling plant in UK to produce rare earth oxides
and carbonates in H1 2024 and completion of the USA Feasibility Study in H2
2024. Initial production in the UK is targeted at 25-30tpa NdFeB with
significant expansion potential.

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 Envipro

 

Envipro was founded in 1950 and is listed on the Tokyo Stock Exchange (TSE)
Prime Market. Envipro has an extensive business portfolio which includes
recycling of a wide range of wastes, end of life products, and Lithium ion
batteries. The company also operates in the international trading sector for
recycled/recovered materials and used vehicles.

In its Resource circulation business sector, Envipro is a pioneer of
technology driven recycling in Japan. It has many Materials Recovery
Facilities (MRF) which can accept a wide variety of industry wastes from
buildings and factories. These state-of-the-art MRFs generate the best quality
recovered materials which includes the ferrous /non-ferrous metals and plastic
scraps.

In its Global Trading business sector, Envipro has many scrap and used car
parts yards all over Japan. This sector also has the logistic service company
for third parties. Products are bought and sold internationally with Envipro
offices located in Chile, Vietnam, UK and Netherlands.

The newly growing sector is Lithium ion Battery Recycling. This sector also
has state-of-the-art MRFs which accept factory defects and end-of-life
batteries. MRFs recovers some critical materials and metals such as cobalt,
lithium, nickel, copper and graphite.

Envipro's goal is to create a sustainable society in which "the life of all
things is utilized and put to good use." Its strategic concept for creating
such a society is "Lead a Circular Economy (CE)". Focusing on the reuse,
recycling and remanufacturing of materials, the Company will promote the
finest technologies for resource circulation across supply chains, and the
development of collaboration systems of forward and reverse logistics through
partnerships with manufacturers. Through these engagements, it will grow into
a company that is truly appreciated in a society which is experiencing a
transition to the circular economy.

For more information, please visit https://www.envipro.jp/en/
(https://www.envipro.jp/en/)

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 (http://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
"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, receipt of TSX-V approval for the Subscription, 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 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.

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 (http://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

 

Tavistock Communications

PR/IR Adviser

Jos Simson, Cath Drummond

UK: +44 (0) 20 7920 3150

mkango@tavistock.co.uk

 

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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