Mkango Announces Agreement with Heraeus to Acquire Heraeus Remloy
MKANGO RESOURCES LTD.
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MKANGO ANNOUNCES AGREEMENT WITH HERAEUS TO ACQUIRE HERAEUS REMLOY
London / Vancouver: May 20, 2026 – Mkango Resources Ltd. (AIM/TSX -V: MKA) (“Mkango” or the
“Company”) is pleased to announce that it has signed an asset purchase agreement with Heraeus
Amloy Technologies GmbH, to acquire its Remloy rare earth magnet recycling business (“Remloy”) for
€8 million (US$9.4 million) in cash, of which €5 million (US$5.6 million) is payable on closing, expected
within the next three months , and €3 million (US$3.5 million) payable two years after closing (the
“Transaction”). The initial payment of €5 million (US$5.6 million) will be funded from Mkango’s
existing cash balance following its £12.5 million (US$16.8 million) equity placement, which closed on
April 10, 2026.
Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets
via a melting process (medium loop recycling) to produce neodymium -iron-boron (“NdFeB”) alloy
powders for the bonded and hot deformed magnet markets, complementary to HyProMag’s short
loop recycling process to produce sintered magnets.
Highlights
• Fully commissioned plant with significant investment in equipment and feedstock to date,
no further major development capital expenditure required and strong operational and
technical team in place
• Production test runs underway for customer samples, with first commercial sales of NdFeB
alloy powder product targeted by the end of the year
• Very large stockpile of rare earth magnet and alloy feedstock totalling more than 300 tonnes
underpins operations and provides future trading opportunities
• Complementary product suite to HyProMag , further enhancing Mkango’s one -stop-shop
solution for customers
• Potential synergies with the Mkango group include:
o Enhanced platform for growth in major market for magnetic materials through the
development of a further operating site in Germany
o Supply of end -of-life magnets from the Remloy stockpile for processing by the
HyProMag group
o Supply of feedstock derived from Hydrogen Processing of Magnet Scrap (“HPMS”)
by HyProMag to Remloy
o Technical and grant funding collaboration between Mkango, Remloy, HyProMag,
University of Birmingham and University of Pforzheim
o Co-marketing of products from Mkango, HyProMag and Remloy , providing an
expanded product suite to customers
o Future opportunity to supply primary rare earth feedstock from Mkango’s Songwe
Hill project to Remloy operations for blending with recycled feedstock
• Significant g rowth opportunities through scale -up of existing operations and bolt on
opportunities for other rare earth metal and alloy process technologies such as strip casting
William Dawes, Chief Executive Officer of Mkango commented: “We are very pleased to announce
this Transaction and look forward to working with the Remloy team and all stakeholders to grow the
Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for
recycling and magnet manufacturing in Germany and its neighbours . On April 28, 2026, HyProMag
GmbH’s production facility in Pforzheim was officially opened by senior representatives of the German
Government and following this Transaction, Mkango will have two rare earth plants in Germany with
the capability to provide customers with a sustainable supply of rare earth products for the sintered,
bonded and hot deformed magnet markets.”
David Bender, Head of Remloy , commented: “I am very pleased to continue the Remloy journey
together with Mkango. The Remloy team has worked hard to develop the business to this point, and
the next phase will be about execution: bringing products to customers, scaling commercial activities,
and leveraging synergies across the Mkango group. I am convinced that this setup provides a strong
basis to further develop rare earth magnet production and recycling capabilities in Germany and
Europe.”
Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting
scale-up to this level of production over the next few years with minimal capital expenditure required.
The assets are currently non-revenue generating and therefore no historic profits are attributable to
them, given the facility is still in the start-up phase. Multiple production runs have been completed
with the current focus on product optimisation, sample generation for customers and ongoing offtake
discussions to support the commencement of commercial sales and targeted scale-up of operations,
whilst capitalising on potential synergies with Mkango and HyProMag.
The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw
materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now
very well positioned in the secondary market for magnetic materials, further enhanced by access to
HPMS technology being commercialised by HyProMag, which enables cost effective and energy
efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.
The Transaction is expected to close in the summer of 2026, subject to customary closing conditions
and receipt of required regulatory approvals.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V Stock Exchanges. 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 Holdings Ltd (“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 Limited 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 expanding HPMS recycling technology into the United States via the
50/50 owned HyProMag USA joint venture company.
Mkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the
proposed Puławy rare earths separation plant in Poland. Both the Songwe and Puławy projects have
been selected as Strategic Projects under the European Union Critical Raw Materials Act. Songwe has
also received Development Funding from the U.S. International Development Finance Corporation
(DFC), the U.S. Government’s development finance institution, secur ing US$4.6 million in
reimbursable funding for Front End Engineering and Design. Mkango signed a Business Combination
Agreement with Crown PropTech Acquisitions to list the Songwe Hill and Puławy rare earths projects
on NASDAQ via a SPAC Merger under the name Mkango Rare Earths Limited.
For more information, please visit 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 (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. 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 ability to obtain approval by the applicable German regulatory authorities
for the Transaction, the completion of required consultations relating to the transfer of Remloy being
completed by Heraeus Amloy Technologies, there being no outstand ing objections or refusals
preventing or delaying closing, potential synergies and integration among and between Mkango,
HyProMag and Remloy , 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, 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 busi ness 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 and 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 disclaim s 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 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
Chief Executive Officer
Alexander Lemon
President
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Caroline Rowe, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 4530 9160/9177
H&P Advisory Limited
Joint Broker
Andrew Chubb, Leif Powis, Jay Ashfield
UK: +44 20 7907 8500
Montfort Communications
Ann-marie Wilkinson, Jack Hickman
UK: +44 20 3514 0897
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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.