Mkango Completes Acquisition of Remloy
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO COMPLETES ACQUISITION OF REMLOY
London / Vancouver: 31 August 2026 – Mkango Resources Ltd. (AIM/TSX-V: MKA) (“Mkango” or the
“Company”) is pleased to announce that following the announcement on 20 May 2026, the Company
has completed the acquisition of the Remloy rare earth magnet recycling business (“Remloy”) from
Heraeus Amloy Technologies GmbH for €8 million (US$9.3 million1) in cash of which €5 million (US$5.8
million1) was settled by Mkango on closing ( the “Transaction”). The balance of €3 million (US$3.5
million1) is payable in cash on 28 August 2028, being the second anniversary of completion.
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 . The Remloy process is complementary
to HyProMag’s short loop recycling process to produce sintered magnets, and to Mkango Rare Earths
UK’s long loop recycling process, to produce mixed rare earth carbonates and oxides. Target capacity
is at least 500 tonnes per year of NdFeB alloy powder.
Highlights
• Fully commissioned production facility, supported by significant investment in equipment
and feedstock to date, providing a strong foundation for current production and future
expansion opportunities.
• Very large stockpile of end -of-life rare earth magnets, rare earth alloys and other raw
materials, totalling approximately 345 tonnes as at completion, providing future feedstock
for Remloy and HyProMag, thereby helping to underpin their respective growth strategies,
and providing future trading opportunities.
• Targeting scale-up to full capacity over the next few years with current focus on small scale
production for product optimisation and initial sales, sample generation for customers and
ongoing offtake discussions to support scale-up of operations
• Significant synergies with both HyProMag and Mkango
Former co -Head of Heraeus Remloy, Mr David Bender, has been appointed Managing Director of
Remloy with effect from completion, and will work closely with the Mkango and HyProMag teams to
grow the business and capture synergies across the group. Mr Bender will continue to be supported
1 Euro amounts have been converted into US dollars at a rate of €1.00 = US$1.16.
by Mr Karsten Rachut, Head of Technology, and Matthias Weber, Head of Operations, together with
a strong corporate and operational team already in place.
William Dawes, Chief Executive Officer of Mkango commented: “We are very pleased to close this
Transaction and look forward to working with the Remloy team and all stakeholders to grow the
Remloy business within Mkango. Through this Transaction, we will further develop and strengthen the
rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its
neighbours. Mkango is now uniquely positioned across the whole rare earth supply chain in Europe
and North America, including projects for recycling, magnet and alloy manufacturing in UK, Germany
and USA, rare earth separation in Poland and mining in Malawi , with r are earth metal making also
under evaluation. Both HyProMag and Remloy can process feedstock derived from recycled end-of-life
magnets or from primary rare earth production, whether third party sourced or, in due course, from
our own projects, to produce a range of magnet and alloy products, providing customers with a one -
stop-shop solution.”
David Bender, Managing Director of Remloy, commented: “Remloy is ideally positioned as part of
Mkango. Over the past few years, the Remloy team has worked hard to develop the company to this
point. We are now entering a crucial phase in which we will make our products available to customers
on a larger scale. Customers will benefit from the synergies within the Mkango Group. I am convinced
that this arrangement provides a solid basis for expanding production and recycling capacities for rare-
earth magnets in Germany and Europe. Our commitment to this mission will significantly contribute to
supply chain resilience and security of supply.”
Remloy Production Facility
With Remloy’s significant magnet and alloy 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.
There are significant potential synergies with Mkango and HyProMag including:
• Enhanced platform for growth in major market for magnetic materials through the
development of a further operating site in Germany
• Supply of end -of-life magnets from the Remloy stockpile for processing by the HyProMag
group
• Supply of feedstock derived from Hydrogen Processing of Magnet Scrap (“HPMS”) by
HyProMag to Remloy
• Technical and grant funding collaboration between Mkango, Remloy, HyProMag, University
of Birmingham and Pforzheim University
• Co-marketing of products from Mkango, HyProMag and Remloy , providing an expanded
product suite to customers
• Future opportunity to supply primary rare earth feedstock from Mkango’s Songwe Hill project
to Remloy operations for blending with recycled feedstock
In addition to potential synergies, there a re significant growth opportunities through scale -up of
existing operations and bolt on opportunities for other rare earth metal and alloy process technologies
such as strip casting.
Please contact David Hinkel, Manager, External Affairs and Business Development, Remloy, for further
information: [email protected]
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 its 100% interest in Remloy 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 and manufacturing 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 via a chemical processing route.
Maginito and CoTec are also expanding HPMS recycling technology into the United States via the
50/50 owned HyProMag USA joint venture company.
Remloy has developed a plant in Bitterfeld, Germany, which recycles end -of-life rare earth magnets
via a melting process (medium loop rare earth magnet 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, and to Mkango UK’s long loop
recycling process, to produce mixed rare earth carbonates and oxides.
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 financ e institution, securing US$4.6 million in
reimbursable funding for Front End Engineering and Design. Mkango’s subsidiary Mkango Rare Earths
Limited 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 (the “Proposed Business
Combination”).
For more information, please visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by Mkango 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” and “forward -looking information” within
the meaning of applicable Canadian securities legislation and other applicable securities laws
(together, “forward -looking statements”) with respect to Mkango and its subsidiaries, including
Remloy. 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.
Forward-looking statements in this news release include, without limitation, statements regarding:
Remloy’s targeted capacity of at least 500 tonnes per year of NdFeB alloy powders and the targeted
scale-up to full capacity over the next few years; the current focus on product optimisation, initial
sales, sample generation for customers and ongoing offtake disc ussions, and the expectation that
these will support the scale-up of operations; the expectation that the Remloy stockpile will provide
future feedstock for Remloy and HyProMag and future trading opportunities; the anticipated
synergies between Mkango, Remloy and HyProMag; and the payment of the deferred consideration
of €3 million in August 2028.
The forward -looking information in this news release is based on certain material factors and
assumptions, including: that the Bitterfeld facility continues to operate substantially as currently
configured and that the targeted capacity is achieved with the equipment, personnel, permits,
feedstock and funding available or expected to become available, and within the timeframes
anticipated; that product optimisation and customer qualification progress as anticipated and that
ongoing offtake discussions result in binding arrangements on acceptable terms; that the stockpile is
of the quantity, composition and quality currently anticipated and c an be processed or sold on
economic terms; that Remloy is successfully integrated into the Mkango group, that key personnel are
retained and that the anticipated synergies are realised; that funding is available on acceptable terms
for Remloy’s working capital and expansion requirements and for the deferred consideration; and that
demand and prices for rare earth materials and magnetic products, and general economic, market,
currency, tariff and geopolitical conditions, do not change materially and adversely. Although the
Company considers these factors and assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and actual results may differ materially from those
anticipated.
Since forward-looking statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties. Actual results could differ materially from those currently
anticipated due to known and unknown risks and uncertainties affecting the Company, including but
not limited to: the risk that the anticipated benefits and synergies of the Transaction are not realised,
in whole or in part or within the timeframes anticipated, including as a result of difficulties in
integrating Remloy or the loss of key personnel; the risk that production, product quality or ramp-up
rates differ materially from those targeted; the risk that offtake discussions do not result in binding
arrangements on acceptable terms or at all; the quantity, quality, recoverability and realisable value
of the Remloy stockpile and the availability and cost of further feedstock; operating, environmental
and permitting risks at the Bitterfeld facility; undisclosed liabilities assumed on completion, the limited
scope of any recourse against the vendor, and risks relating to the separation of Remloy from the
Heraeus group; the availability of financing on acceptable terms; and changes in rare earth and NdFeB
prices, exchange rates, energy and labour costs, export controls and tariffs. These risks should be read
together with the other risks described below and in the Company’s continuous disclosure filings,
which are available on SEDAR+ at www.sedarplus.ca.
Forward-looking statements in this news release also include, without limitation, statements under
“About Mkango Resources Ltd.” concerning the Proposed Business Combination, the development of
Songwe Hill and Puławy, the expansion of rare earth magnet rec ycling operations in the United
Kingdom, Germany and the United States, the Development Funding awarded by the DFC, and the
status of Songwe Hill and Puławy as Strategic Projects under the European Union Critical Raw
Materials Act.
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, and actual
performance and results in future periods may differ materially from those expressed or implied by
them.
In relation to the Proposed Business Combination, such factors and risks include, without limitation:
the ability of the parties to complete it on the terms and within the timeframe contemplated, or at all,
including the satisfaction or waiver of the conditions precedent to closing and the receipt of required
shareholder, regulatory, stock exchange and court approvals, the effectiveness of any related
registration statement filed with the United States Securities and Exchange Commission and the
approval for listing of the securities of Mkango Rare Earths Limited on NASDAQ; the level of
redemptions by shareholders of Crown PropTech Acquisitions and the amount of cash available on
closing; the availability of any additional financing required; the exercise of termination rights under,
or the expiry of the outside date in, the Business Combination Agreement; the consequences for
Mkango’s interests in Songwe Hill and Puławy and for Mkango’s status on AIM and the TSX Venture
Exchange, including the application of Rule 14 of the AIM Rules for Companies; and the anticipated
benefits of the Proposed Business Combination not being realised in whole or in part.
Other factors and risks include, without limitation: the availability of, or delays in obtaining, financing
to develop Songwe Hill and the recycling plants being developed by Maginito in the United Kingdom,
Germany and the United States; the drawdown and continued availability of the reimbursable
Development Funding awarded by the DFC; the retention of Strategic Project status for Songwe Hill
and Puławy under the European Union Critical Raw Materials Act; governmental action and other
market effects on demand and pricing for rare earths and associated downstream products;
geological, technical, permitting and regulatory matters relating to the development of Songwe Hill
and Puławy ; political, fiscal, legal, taxation, currency and other risks associated with operating in
Malawi, Poland, Germany, the United Kingdom and the United States; the ability to scale the HPMS
and chemical recycling technologies to commercial scale; competition and the availability of scrap
supplies for Maginito’s recycling activities; cost overruns and complexities in building and operating
the plants; and the results of feasibility studies being less favourable than anticipated.
The forward-looking statements contained in this news release are made as of the date of this news
release. Except as required by applicable law, Mkango disclaims any intention and assumes no
obligation to update or revise any forward -looking statements, w hether as a result of new
information, future events or otherwise. Additionally, Mkango 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 Ltd.
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
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UK: +44 20 3470 0470
Cavendish Capital Markets Limited
Joint Broker
Neil McDonald, Pearl Kellie
UK: +44 20 7330 0500
H&P Advisory Limited
Joint Broker
Andrew Chubb, Leif Powis
UK: +44 20 7907 8500
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 responsibi lity 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 Mkango in the United States. The securities of Mkango 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.