Expanding into Nevada and South Carolina
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
HYPROMAG USA TO COMMISSION SCOPING STUDY TO TRIPLE CAPACITY IN THE UNITED STATES
EXPANDING INTO NEVADA AND SOUTH CAROLINA
London / Vancouver: 4 September 2025 - Mkango Resources Ltd (AIM / TSX-V:MKA) (the “Company” or
“Mkango”) is pleased to announce that US-based PegasusTSI Inc. (“PegasusTSI”) and Canada-based BBA USA
Inc. ("BBA") have been engaged to complete the HyProMag USA, LLC (“HyProMag USA”) expansion concept
study (“Concept Study” or “Project” ) for new Nevada and South Carolina rare earth permanent magnet
recycling plants in collaboration with global electronics recycling company, Intelligent Lifecycle Solutions, LLC
(“ILS”). The expansions envisaged by the Concept Study would be completed concurrently with the phased
expansion of the first HyProMag USA facility located in Fort Worth, Texasi (the “Texas Hub”) to optimise the
“hub and spoke” configuration for rare earth magnet production and production of Hydrogen Processing of
Magnet Scrap (“HPMS”) recycled NdFeB alloy powder.
The Concept Study will define the conceptual design and investment requirements for new HyProMag
facilities in Williston, S outh Carolina, and Reno, N evada. It will evaluate site suitability, logistics, scope of
developments, infrastructure and environmental assessment, while confirming additional HPMS processing
capacity to support up to four additional magnet production lines. The Project will provide an AACEii Class V
CAPEX estimate and will incorporate the current advanced design of the HyProMag USA facility located in
Fort Worth, Texas.
Julian Treger, CEO of CoTec, commented: “We are very excited to begin formally expanding and optimising
the footprint of HyProMag USA to Nevada and South Carolina collaborating with our partner, ILS. HyProMag
USA’s NPV for the Texas hub is circa $600 million based on recent expansion plans, and the economics of
expanding the hubs are linear which provides a potential 3x increase in Company value with additional hubs.
Furthermore, given the recent strong increase in the price of ra re earths and their associated magnets, the
valuation of the Company continues to strengthen as detailed engineering, supply of feedstock and offtake
discussions continue at pace. With the recent significant steps by the U.S. Government to support domestic
supply and reshoring of rare earth magnet production, HyProMag USA is well positioned to support U.S.
demand growth with commercial operations targeted in H1 2027. HyProMag USA continues to d evelop
strategic partnership discussions with all stakeholders to accelerate financing, commissioning and product
verification timelines.”
Will Dawes, CEO of Mkango, commented: “Momentum continues to gather for HyProMag USA with detailed
engineering progressing well, and we are very excited to be pushing forward with the Concept Study for the
expansion Project. This Project can unlock significant additional value for the group and help catalyze further
development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United
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States. We look forward to continuing to work with the Project team as we move to the next stage of
development.
HyProMag USA Feasibility Study
The Feasibility Study includes the Texas Hub, and two pre-processing facilities located in South Carolina and
Nevada respectivelyiii. In March 2025, HyProMag USA announced the expansion of the detailed engineering
phase to include three HPMS vessels i and that it was initiating concept studies for further expansion and
complementary “Long-Loop” recycling iv. The Texas Hub’s annual production is expected to be 750 metric
tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB
co-products (total payable capacity – 1,557 metric tons NdFeB within five years of commissioning) over a 40-
year operating life. It is expected the production facility will provide significant optionality to supply the U.S.
market with additional NdFeB alloy powder while assisting in revitalizing the U.S. magnet sector with the
creation of 90-100 skilled magnet manufacturing jobs.
In March 2025, HyProMag USA announced the results of an independent ISO -Compliant product carbon
footprint study which confirmed an exceptionally low CO 2 footprint of 2.35 kg CO 2 eq. per kg of NdFeB cut
sintered block product.v
In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock vi
initiative pursuant to the recently announced feedstock supply and pre -processing site share agreement
between HyProMag USA and ILS.vii
About HyProMag USA
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and
HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a
79.4/20.6 per cent basis by Mkango Resources Ltd. (AIM/TSX-V: MKA) and CoTec.
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, 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 project s have been
selected as Strategic Project s under the European Union Critical Raw Materials Act. Mkango has signed a
Business Combination Agreement with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare
earths projects on NASDAQ via a SPAC Merger.
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For more information, please visit www.mkango.ca
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”, “expec ts” 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 occ ur, 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 li miting the
foregoing, 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 various recycling plants in the UK, Germany and the US as well as the separation
plant in Poland, the ability to scale the HPMS and chemical recycling technologies to commercial scale,
competitors having greater financial capability and effective competing technologies in the recycli ng 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.
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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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.com
@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 (020) 4530 9160/77
i https://mkango.ca/news/hypromag-usa-expands-detailed-engineering-phase-to-include-three-hpms-vessels-and-initiates-concept-studies-for-further/
ii Association for the Advancement of Cost Engineering (AACE)
iii https://mkango.ca/news/hypromag-usa-feasibility-study-demonstrates-robust-economics-and-the-opportunity-to-develop-a-major-new-domestic-source-of/
iv Conventional leach, extraction purification and precipitation process
v https://mkango.ca/news/hypromag-usas-iso-compliant-product-carbon-footprint-study-confirms-exceptionally-low-co-sub-2-sub-footprint-of-2.35-kg-co-sub/
vi https://mkango.ca/news/hypromag-usa-commences-stockpiling-of-feedstock/
vii https://mkango.ca/news/hypromag-usa-enters-into-agreement-with-global-electronics-recycler-intelligent-lifecycle-solutions-for-feedstock-supply-and/