Canada Canada Hypromag Achieves Further Technical Milestones as Piloting Ramps up IN Advance of Commercial Rare Earth Magnet Production IN the UK, Germany and USA
MKANGO RESOURCES LTD.
COTEC HOLDINGS CORP.
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Canada Canada
HYPROMAG ACHIEVES FURTHER TECHNICAL MILESTONES AS PILOTING RAMPS UP IN ADVANCE OF
COMMERCIAL RARE EARTH MAGNET PRODUCTION IN THE UK, GERMANY AND USA
London / Vancouver: June 16, 2025 – Mkango Resources Ltd. (AIM/TSX -V: MKA) (“Mkango”) and
CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) are pleased to provide a technical update
for HyProMag Limited (“HyProMag”) and its ongoing advanced pilot programme for the scale-up and
roll out of Hydrogen Processing of Magnet Scrap (“ HPMS”) technology to produce domestically
sourced and short-loop recycled rare earth magnets with a minimal carbon footprint in the UK (2025),
Germany (2025) and United States (2027).
The ongoing advanced pilot programme at the University of Birmingham is proceeding in parallel with
development of the commercial scale plant at Tyseley Energy Park in Birmingham, UK.
HPMS technology was developed by the Magnetic Materials Group at the University of Birmingham
(“UoB”), underpinned by approximately US$100 million of research and development funding. HPMS
has major competitive advantages over other rare earth magnet recycling technologies, which are
largely focused on chemical processes but do not solve the challenges of extracting magnets from end-
of-life scrap streams and only produce rare earth oxides or mixed rare earth carbonates, which require
further processing. HyProMag provides the solution , producing a value-added, magnet product for
direct sale to domestic customers across multiple jurisdictions.
Over the course of the previous 12 months , HyProMag has made significant technical progress to
support its efforts in optimising design criteria, processing different NdFeB scrap feed materials and
producing recycled, low carbon, commercial, magnets of different technical grades . To date, the
University of Birmingham Pilot plant has p roduced over 3,500 magnets of commercial grade from
various waste streams . Sample magnets have been provided to commercial partners for extensive
testing and product verification and will support continued off taker due diligence over the coming 12
months for the UK, Germany and U.S. businesses.
Recent progress and technical milestones for HyProMag include the following:
• Further optimisation of HPMS for different NdFeB scrap sources – HPMS continues to
demonstrate very effective removal and recycling of magnets from electric motor rotors, where
they are embedded in laminated stacks of transformer steel . HyProMag is engaging with
multiple parties in this sector to provide pre-processing and recycling solutions, as well as in
other sectors such as e-bikes, medical devices and professional audio units.
• Hard disk drive (HDD) magnets continue to be an important feedstock for HyProMag with HPMS
now succesfully demonstrated on at least 18 different morphologies of HDDs and commercial
grade N45M and N42M magnets produced from the liberated HPMS powder. These and other
magnets produced via HPMS from other scrap sources, ranging in grade from N48 remanence
and UH coercivity, are currently being tested in a wide range of applications, including
automotive, audio and others.
• In collaboration with ZF Automotive and UoB, HyProMag has recently supplied magnets for
prototype testing in automotive ancillary applications which were successfully tested by ZF,
with performance nearly identical to magnets made from virgin materials as indicated in the
recent press article: https://www.engineerlive.com/content/recycling-and-reusing-motor-
magnets.
• As a key partner in the Securing Critical Rare Earth Materials (“SCREAM”) project, GKN
Automotive was instrumental in delivering simulation and physical testing to verify that the
HyProMag magnets produced via short-loop recycling have equivalent performance to primary
magnets of the same grade.
• The first production-ready HDD magnet separation system has been built by INSERMA ANOIA
SL (“Inserma”)i and is expected to be delivered to the UK in Q3. The system has been shown to
more accurately identify and remove the magnets from HDD for HPMS processing at scale. The
addition of a printed circuit board removal module is at an advanced stage of development ,
which would be transformational for the process and enhances the Information Security
requirements of HDD Recycling.
• Increased magnetic performance has been achieved through further optimisation of the HPMS
and magnet manufacturing processes, with positive feedback from customers who are currently
stress testing magnet prototypes . F urther technical details, including magnet grades and
performance achieved, are elaborated in a detailed HyProMag technical bulletin, which can be
accessed via the following link : https://hypromag.com/executive-summary-of-recent-
technical-progress-by-hypromag-ltd-june-2025
• Magnets produced from HPMS generated alloys are the first sintered NdFeB magnets to be
produced in the UK since the closure of Philips in Southport in December 2003. This capability
for manufacture of sintered , commercial grade magnets need not be confined to producing
magnets directly from scrap and can be further enhanced by blending with new cast alloys made
from virgin mine-sourced metals or recycled metals.
• Acceleration of research and development (R&D) work on blending recycled HPMS powders
with virgin materials (from primary as well as medium and long loop recycled sources) is
underway, which will broaden the range to higher magnet grades available for commercial
purchase and aligns strongly with incoming thresholds for minimum recycled content under the
European Union Critical Raw Materials Act.
• Over 100 different blends of recycled material have been created in the last six months to meet
R&D and customer requirements, with magnets derived from both single and blended batches
of HPMS powder demonstrating consistent performance and further validating the short -loop
recycling and magnet manufacturing process.
• Whether in collaborative projects, such as SusMagPro and REEsilience in Europe and UKRI
(United Kingdom Research and Innovation) projects RaRE, REAP, SCREAM, ReREwind and
REEmelt, or through other collaborations, HyProMag’s development partners remain confident
of its continuing progress. A recent article has been published which has acknowledged the
quality of magnets produced for rotating machines:
https://www.engineerlive.com/content/recycling-and-reusing-motor-magnets.
• Rare earth magnets derived from HPMS will be extremely low in their Product Carbon Footprint
(PCF). For further details and breakdown see https://mkango.ca/news/hypromag-usas-iso-
K ey :
N52
N50 N50M
N48 N48M N48H
N45 N45M N45H N45S H N45UH
N42 N42M N42H N42S H N42UH
N40 N40M N40H N40S H N40UH
N38 N38M N38H N38S H N38UH N38E H
N35 N35M N35H N35S H N35UH N35E H
N33 N33M N33H N33S H N33UH N33E H
N30 N30M N30H N30S H N30UH N30E H
N28 N28UH N28E H
E xpected future manufacturing capability at T yseley
Current manufacturing capability from pilot line at UoB
Coercivity
(kA /m)
R emanence
(mT )
compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-2-sub-footprint-
of-2.35-kg-co-sub/
Through the abovementioned workstreams, together with further optimisation and development of
blending and grain boundary technologies, HyProMag expects to significantly expand the range of
commercial grades produced as illustrated below:
Will Dawes, Mkango CEO commented: “HyProMag is going from strength to strength with the support
of its excellent and growing team, as well as from the University of Birmingham and its other partners.
The company is well placed to capitalise on the increasing demand for more robust supply chains and
sustainably sourced magnetic materials – technologies being commercialised by HyProMag will be
transformational for the sector, and we look forward to first sales in UK and Germany in the coming
months, as well as completion of detailed engineering in the USA in advance of large -scale project
development.”
Julian Treger, CoTec CEO commented: “We are very pleased with the continued progress of HyProMag
in advance of the commissioning of the UK and German plants. The learnings from these plants and
the University of Birmingham’s pilot plant programme represent a significant opportunity for
HyProMag USA to optimise and refine the detailed design phase. Furthermore, the production of a
wide range of magnet gra des for U.S . customers from multiple scrap feedstocks will support our
financing and off take activities.”
Nick Mann, HyProMag Limited MD commented: “The improvements on magnetic properties made
are down to the increased understanding gained by the metallurgical team on how to process, blend
and sinter differing input feed stocks to achieve a consistent grade of magnet. As we begin production
Remanence enhancement
through grain boundary
removal and blending
Coercivity enhancement
through annealing and
grain boundary diffusion
at Tyseley we are testing, collaborating and supplying our commercial partners with our magnets
against specifications and are demonstrating good alignment with their products.”
Sean Worrall, GKN Automotive Chief Engineer Product Sustainability commented: “As the key
physical testing and simulation partner, we are pleased to confirm that the recycled magnet s
replicated expected performance exceptionally closely during testing. This means HyProMag’s short-
cycled magnets can be reliably used in motor design simulation to deliver real world performance. The
HPMS process enables a supply chain of sustainable, competitive, rare-earth magnets, decoupled from
the problems of the virgin material supply chain”
2025 University of Birmingham (UoB) Accelerated Pilot Programme
In parallel with commissioning of the commercial plants in UK and Germany, and to support ongoing
HyProMag USA LLC (“HyProMag USA”) detailed design ii, HyProMag has further invested in piloting
utilising the UoB infrastructure, onboarded new production engineers and tripled the throughput
capacity of the UoB pilot vessel and associated processes. During a six-month period, multiple sources
of scrap feeds will be processed with a target of two tonnes of HPMS power produced and converted
into commercial grade magnets. HyProMag will provide these samples to potential customers, as well
as targeting further improvements in the engineering design criteria, recoveries and magnet making
capability to support commercial developments in the UK, Germany and U.S.
The main objectives of the 2025 UoB Accelerated Pilot Programme are to:
• Provide NdFeB block and finished magnet samples to customers , to support product
marketing, offtake discussions and scale-up in Europe and North America, and to complement
HyProMag’s 2025 commercial production of NdFeB alloys, blocks and finished magnets
derived from the commercial scale plant being commissioned at Tyseley Energy Park (TEP) by
the University of Birmingham.
• Enhanced QAQC planning - Commercial production at TEP is targeted at 600kg batches of
HPMS powder that will be analysed by ICP -OE, XRF and gas analysis. These characterised
batches will be blended for targeted magnet qualities based on the development know -how
from piloting. These batches will be large and consistent in quality; 1.2 tonnes of blended
powder can, for example, deliver 50,000 magnets based on a typical 25g speaker application.
Sampling QAQC procedures are being developed with end-users.
• Further demonstrate and optimise HPMS , including pre-processing for larger volumes and
broader variety of scrap feeds to derive optimal process conditions and estimates of recovery,
NdFeB magnet content and yield to short loop recycling for different scrap feeds
• Complete further variability analysis across different HPMS batches of the same type of scrap
feed.
• Further demonstrate the ability to blend HPMS powders from different HPMS batches of
the same scrap feed with or without virgin feed additions
The Accelerated Piloting Programme targets over 50 additional HPMS runs over a six -month period
covering principal scrap feeds containing: separated magnet scrap, VCMs from different sources, pre-
processed HDD feed, surface mounted and embedded rotors from electric motors, MRI, wind turbine
feed, speaker assemblies and other forms of NdFeB scrap material provided by strategic partners.
About Mkango Resources Ltd.
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 HPMS 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 in Malawi (“Songwe”) and the
Pulawy rare earths separation project in Poland (“Pulawy”). Both the Songwe and Pulawy projects
have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Mkango
has signed a letter of Intent with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare
earths projects on NASDAQ via a SPAC Merger.
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX - V")
and the OTCQB and trades under the symbols CTH and CTHCF respectively. CoTec Holdings Corp. is a
forward-thinking resource extraction company committed to revolutionizing the global metals and
minerals industry through innovative, environmentally sustainable technologies and strategic asset
acquisitions. With a mission to drive the sector toward a low -carbon future, CoTec employs a dual
approach: investing i n disruptive mineral extraction technologies that enhance efficiency and
sustainability while applying these technologies to undervalued mining assets to unlock their full
potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the
production of critical minerals, shortens development timelines, and reduces environmental impact.
CoTec’s strategic model delivers low capital requirements, rapid revenue generation, and high barriers
to entry, positioning it as a leading mid-tier disruptor in the commodities sector.
For more information, please visit www.cotec.ca.
About HyProMag USA LLC.
HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent
owned by Maginito, which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.
For more information, please visit www.hypromagusa.com
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 (Withdrawa l) 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 and CoTec. Generally, forward looking statements
can be identified by the use of words such as “plans”, “expects ” or “is expected to”, “scheduled”,
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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 delivery and effectiveness of the HDD magnet separation system built by
Inserma, the results of the Accelerated Pilot Programme at UoB , 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 a nd 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, 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 and CoTec disclaim 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 and CoTec undertake 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
[email protected] [email protected]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
Canada: +1 604 992-5600
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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 https://mkango.ca/news/maginito-secures-exclusive-agreement-with-inserma-to-commercialise-automated-
pre-processing-of-hard-disc-drives-loudspeakers/
ii https://mkango.ca/news/cotec-and-mkango-appoint-lead-engineers-pegasustsi-and-bba-to-perform-
engineering-procurement-and-construction-management-epcm/