HyProMag’s Rare Earth Magnet Recycling Technology Selected as a Minerals Security Partnership Project
HyProMag’s Rare Earth Magnet Recycling Technology Selected as a Minerals
Security Partnership Project
LONDON and VANCOUVER, British Columbia, Oct. 11, 2023 -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (“Mkango”) and
CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) are pleased to announce that HyProMag Ltd’s (“HyProMag”)
rare earth magnet recycling technology has been selected by the Minerals Security Partnership (“MSP”) for support as one of
its key projects. The technology was selected by the MSP 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.
Partner governments includes the United Kingdom, the United States, Australia, Canada, Finland, France, Germany, Japan,
India, the Republic of Korea, Norway, Sweden and the European Union.
The MSP promotes responsible growth across the critical minerals sector via a shared commitment to high environmental,
social, and governance (“ESG”) standards, sustainability and shared prosperity. The MSP partner governments regard the
further development of responsible and resilient supply chains to be critically important for an equitable and sustainable energy
transition.
As MSP announced today, the MSP is committed to leveraging the collective financial and diplomatic resources of its 14
partners by deepening collaboration between governments, project developers and investors to drive responsible investment in
critical minerals projects.
HyProMag utilises hydrogen to recycle rare earth magnets vital for the global energy transition by liberating them from end-of-
life scrap.
MSP UK Government announcement
Julian Treger, CoTec CEO commented : “This exciting development is a strong validation of HyProMag’s REE recycling
technology and further demonstrates its attractiveness and potential, both from a strategic and commercial perspective.”
“CoTec’s strategy is to align its technologies and assets with the UN Sustainable Development Goals and its involvement with
HyProMag is just one example of how we strive to achieve this goal. CoTec and Mkango are looking forward to working with
the MSP to expedite the roll out of the technology. The MSP provides a key platform from which strategically aligned
governments and companies can commercialise new proven technologies as part of the energy transition towards a low carbon
and sustainable future”.
Will Dawes, Mkango CEO commented ; “HyProMag is one of only 17 projects selected across the entire critical minerals
sector to receive support from the MSP.
“We see this as a significant endorsement of the technology, which can make a substantial impact in unlocking the supply
chain for rare earth magnet recycling from end-of-life products and enabling the production of rare earth alloys and magnets
with a significantly reduced carbon footprint.”
HyProMag
HyProMag Ltd is commercialising rare earth magnet recycling using Hydrogen Processing of Magnet Scrap (HPMS)
technology, which can liberate and recycle magnets from end-of-life scrap.
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. HyProMag’s company presentation can be viewed via the following link: HyProMag Corporate
Presentation
Having commissioned the UK’s first rare earth magnet recycling pilot plant at the University of Birmingham in 2022, alongside
the UK’s only facility to make sintered rare earth magnets, HyProMag, together with the University of Birmingham, are
developing a large-scale recycling plant at Tyseley Energy Park, Birmingham, with first production by the end of this year and
supported with funding from UK Research and Innovation. Investment from Mkango Resources in 2020 helped scale-up and
catalyse international growth initiatives, including in Germany, where HyProMag has established a sister company, HyProMag
GmbH, and in the U.S. through a new Maginito-CoTec 50:50 joint venture company, with evaluation of other jurisdictions
underway. Maginito (79.4% Mkango; 20.6% CoTec) acquired HyProMag in 2023.
In line with MSP’s commitment to recycling and reuse, the development of new sources of recycled rare earths can accelerate
development of sustainable and competitive rare earth magnet production.
Maginito
Maginito is a UK based Company owned 79.4 per cent by Mkango and 20.6 per cent by CoTec. It is focused on developing
green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well
as innovative rare earth alloy, magnet, and separation 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,
and a 100 per cent interest in Mkango Rare Earths UK Ltd (“Mkango UK”), a company focused on long loop rare earth magnet
recycling in the UK via a chemical route.
About Mkango Resources Ltd.
Mkango's corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium,
dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates Mkango from its peers, uniquely positioning the Company in the
rare earths sector. Mkango is listed on the AIM and the TSX-V.
Mkango is developing its Songwe Hill rare earths project (“Songwe”) in Malawi with a Definitive Feasibility Study completed in
July 2022 and an Environmental, Social and Health Impact Assessment approved by the Government of Malawi in January
2023.
In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical producer have agreed to work together towards
development of a rare earth separation plant at Pulawy in Poland (the “Pulawy Separation Plant”) to process the purified mixed
rare earth carbonate produced at Songwe.
Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB and trades under the
symbol CTH and CTHCF respectively. The Company is focused on investing in innovative technologies which have the potential
to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those
technologies to undervalued operating assets and recycling opportunities, as the Company transitions into a mid-tier mineral
resource producer.
CoTec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a
green revolution as it embraces technology and innovation. The Company has made four investments to date and is actively
pursuing operating opportunities where current technology investments could be deployed.
For more information, please visit www.cotec.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 and CoTec, including their plans to proceed with the roll-out of HyProMag’s rare earth magnet recycling
technology into the United States by way of a new joint venture and the anticipated structure, costs and benefits of that joint
venture. 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 HyProMag US’s operations,
Songwe Hill, the Tyseley Recycling Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot Plant, the Pulawy
Separation Plant, 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 Tyseley Recycling Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot Plant, the Pulawy
Separation Plant and future investments in the United States pursuant to the proposed 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, Mkango and CoTec disclaim 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, Mkango 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, 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
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
Canada: +1 604 992-5600
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
Mkango or CoTec in the United States. The securities of Mkango and CoTec 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.