Mkango Releases Q3 2025 Results
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M K A N G O R E S O U R C E S L T D .
550 Burrard Street
Suite 2900
V a n c o u v e r
B C V 6 C 0 A 3
C a n a d a
MKANGO RELEASES Q3 2025 RESULTS
London / Vancouver: 1 December 2025 - Mkango Resources Ltd (AIM/TSX-V: MKA) (the “ Company” or
“Mkango”), is pleased to announce that it has released th e financial statements and management's discussion
and analysis (“MD&A”) for the 3-month period ending 30 September 2025. The reports are available under the
Company's profile on SEDARplus ( www.sedarplus.com) and on the Company's website
(https://mkango.ca/investors/financials/).
To view the Financial Statements, please click here [RNS TO INSERT LINK TO PDF]
To view the Management Discussion and Analysis, please click here: [RNS TO INSERT LINK TO PDF]
HIGHLIGHTS AND RECENT MILESTONES
Balance Sheet
Cash position of US$2 million as at 30 Septem ber 2025 with a £3 million (US$4 million) successful
equity raise in October 2025 post quarter end.
Magnet Recycling & Manufacturing
Successful first production and commercial sales of recycled neodymium iron boron (“NdFeB”) alloy
powder from Tyseley Energy Park (“TEP”) in the UK – equivalent to 3 tonnes of oxidized NdFeB alloy
powder produced to date, with first revenue to be reported in the year end results.
HyProMag UK continues to target production of 2 tonnes per month of recycled NdFeB alloy powder
and is evaluating phased expansion starting next year, init ially to 100-350 tonnes per annum (“tpa”)
of NdFeB alloys and magnets and subsequently to 1,000 tpa.
First production runs of NdFeB magnet blocks have been completed post quarter end at TEP following
commissioning of the sintering furnac e, with magnet manufacturing operations to be scaled up over
the coming months to support product marketing and commercial sales of recycled magnets in parallel
with sales of NdFeB alloy powder.
Commissioning of key equipment at the HyProMag Germany recycling and magnet manufacturing
plant is targeted by the end of 2025, with first production of NdFeB alloy powder expected in Q1 2026,
subject to permitting. HyProMag Germany is evaluating expans ion options to 750 tpa from the
currently planned 100-350 tpa.
The HyProMag USA rare earth magnet recycling and manufacturing project continues to advance
through detailed engineering. The No tice to Proceed (“NTP”) for the project is expected in Q1 2026
with commissioning targeted for mid-2027.
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Inserma pre-processing units are being deployed across multiple countries to provide a cost-effective
and energy efficient automated circular solution for recycling of NdFeB ma gnets and PCBs from end-
of-life hard disk drives, underpinned by a partnership with Intelligent Lifecycle Solutions (“ILS”).
Other jurisdictions are being evaluated for HyProMag and Inserma technology roll-out including Japan,
Canada and South Korea.
Mkango Rare Earths Limited
In July 2025, Mkango Rare Earths Limited (“MKAR”) , (formally known as Lancaster Exploration BVI)
and Crown PropTech Acquisitions (“CPTK”) entere d into a Business Combination Agreement (“BCA”)
to form a pure-play global rare earth platform expected to list on Nasdaq, including the advanced-
stage Songwe Hill rare earths project in Malawi (“Songwe”) and the Pulawy rare earths separation
project in Poland (“Pulawy”).
Mkango’s pro forma shareholding (excluding it s existing recycling businesses) is valued at US$400
million prior to transaction expenses and excluding any net proceeds from a PIPE financing and any
amounts available from CPTK's trust account.
On 29 September 2025, Mkango Rare Earths Limite d entered into a Project Development Funding
Agreement with the U.S. International Developm ent Finance Corporation (“DFC”) for US$4.6 million
in reimbursable funding to advance Songwe Hill.
HyProMag UK
In partnership with the University of Birmingham’ s Magnetic Materials Group (MMG), HyProMag UK is
developing the first commercial-scale rare earth magne t recycling and manufacturing operation in the UK with
commissioning of the plant at the MMG site nearing completion.
The Hydrogen Processing of Magnet Scrap (“HPMS”) vessel has been installed and commissioned. Powder
processing systems, including purification, jet milling and blending equipment, are now operational. Installation
of commercial sintering capability is complete, with th e first NdFeB magnet blocks produced post quarter end
and now undergoing characterisation.
Supply and offtake agreements have been signed and first NdFeB alloy powder has been sold for long-loop
chemical processing, representing the first commercial sales from UK operations, with associated revenue to be
reported in the year end results.
The Company is evaluating a phased expansion starting next year, initia lly to 100-350 tpa of NdFeB alloys and
magnets and subsequently to 1,000 tpa.
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Figure 1: HPMS vessel – Tyseley Energy Park, Birmingham, UK Figure 2: Powder processing plant – Tyseley Energy Park,
Birmingham, UK
Figure 3: 50kg and 400kg sintering furnaces at Tyseley Energy Park,
Birmingham, UK
Figure 4: First magnet blocks post sintering at Tyseley Energy
Park, Birmingham, UK
HyProMag Germany
HyProMag Germany is progressing toward establishing a European manufacturing hub for recycled rare earth
magnets.
Installation of the HPMS vessel, sieve, blender and jet mill is complete and ready for commissioning. A transverse
alignment press is on site, and sintering furnaces are due to arrive in December 2025. Completion and
certification of the axial alignment press are in the fina l stages, with factory accept ance testing scheduled for
December 2025. Orders for finishing equipment and expanded sintering capacity will be placed before year-end.
Commissioning of both the HPMS vessel and jet mill is targeted by the end of 2025, with first production expected
in Q1 2026, subject to permitting.
HyProMag Germany is evaluating expansion options to 750 tonnes per year from the currently planned 100-350
tpa - an updated 3D fly through for the conceptual design can be accessed via the following link:
https://youtu.be/HFAY3YImPg0
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Figure 5: HyProMag Germany premises - Pforzheim
Figure 6: HyProMag Germany - layout
Figure 7: HyProMag Germany - installed jet mill
Figure 8: HyProMag Germany – installed HPMS vessel
HyProMag USA
During the third quarter, detailed engineering design cont inued and is now more than 25% complete, on time
and within budget and the scope of the Texas hub has been extended to include three HPMS vessels in the
recycling plant compared to two included in the feasibility study. The third HPMS vessel will increase production
of associated NdFeB co-products from 291 tpa to approximately 750 tpa.
HyProMag USA is evaluating the further expansion of the project through the placement of two additional HPMS
recycling and magnet manufacturing facilities in South Carolina and Nevada respectively to triple the capacity of
the project. HyProMag USA has also commenced investigating the addition of a long loop chemical processing
plant which will be complementary to the short loop proc ess. The NTP for the project is expected in Q1 2026
with commissioning targeted for mid-2027.
HyProMag USA entered into a feedstock supply and pre-processing site share agreement with global electronics
recycling company ILS. In terms of the agreement, the project’s pre-processing facilities will be based on the ILS
sites in South Carolina and Nevada and ILS will provide f eedstock to HyProMag USA. Stockpiling of end-of-life
electronic scrap has commenced and to date, ILS has engaged with several suppliers to establish consistent feed
of electronic scrap.
HyProMag USA has also purchased thr ee Inserma and PCB machines for each of the Texas, South Carolina and
Nevada sites for pre-processing of the end-of-life electr onic scrap material. Delivery of these machines is
expected prior to year-end and is subsequently expected to accelerate the stockpiling by ILS.
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The Project has received a Make More in America (MMIA) domestic finance letter of interest (“LOI”) from the
U.S. Export-Import (“EXIM”) Bank for its first integrated rare earth recycling and magnet-making facility in Dallas-
Fort Worth, Texas. In terms of the letter, EXIM may be able to consider potentia l financing of up to $92 million
of the project’s costs with a repayment tenor of 10 years.
In addition to the EXIM LOI, discussions with two comme rcial banks in relation to potential project finance for
the project are progressing well and entering the due diligence phase, whilst discussions with several US federal
and state government bodies to support funding and other incentive opportunities remain ongoing.
SPAC TRANSACTION – MKANGO RARE EARTHS LIMITED
MKAR and CPTK have signed a BCA to form a global, vert ically integrated rare eart h company with a focus on
supplying mined, refined and separated rare earth oxides to markets across North America, Europe and Asia.
Mkango’s pro forma shareholding (excluding its existing recycling businesses) is valued at US$400 million prior
to transaction expenses and excluding any net proceeds from a PIPE financing and any amounts available from
CPTK's trust account.
The transaction is expected to provide a strong financia l platform to accelerate the development of Mkango’s
key growth assets, including Songwe Hill in Malawi and the Pulawy separation project in Poland.
The Company is currently finalising a revised NI 43-101 technical report a nd a US SK-1300 technical report on
Songwe Hill and a prefeasibility study on Pulawy. This will allow the finalisation and filing of a Form F-4
Registration Statement. Once the Registration Statemen t has become effective with the U.S. Securities and
Exchange Commission (currently anticipated to be Q1 2026), CPTK will endeavour to obtain shareholder approval
and the transaction will proceed toward closing.
DFC PROJECT DEVELOPMENT FUNDING FOR SONGWE HILL
On 29 September 2025, Mkango Rare Earths Limited signed a Project Development Funding Agreement with the
U.S. International Development Finance Corporation (“DFC”), securing US$4.6 million in reimbursable funding to
support key technical, environmental, and permitting mi lestones at Songwe Hill. The DFC is also evaluating a
potential US$100 million direct loan, wh ich would represent a significant step toward enabling full project
development financing.
The DFC’s engagement further validates Songwe Hill’s stra tegic importance to global rare earth supply chains
and is expected to complement Mkango’s broader financing strategy, including the proposed SPAC transaction.
APPOINTMENT OF JOINT BROKER
Mkango has appointed Hannam & Partners as joint broker and corporate sponsored research provider, effective
1 December 2025. Together with joint brokers, SP Angel Corporate Finance LLP and Alternative Resource Capital,
Hannam & Partners will support Mkango’s strong growth profile developing advanced stage projects across the
rare earths supply chain.
London-based, Hannam & Partners is authorised and regul ated by the FCA. Under th e terms of the agreement
(“Agreement”), Hannam & Partners will provide corporate broking and research services to the Company, and
provide general market intelligence, feedback on the mark et’s view of the Company and on market activity in
the shares. The Agreement provides for an annual fee of £50,000 per year in connection with the provision of
research services and runs for an initial term of 12 months with a one month notice of termination provision.
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Hannam & Partners and Mkango are unrelated and unaff iliated entities. Hannam & Partners has confirmed to
Mkango that it does not have any interest, direct or indirect, in any securities of Mkango or a right to acquire any
such securities.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango’s corp orate 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 Corp. (“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 Ltd 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 Hydrogen Proc essing of Magnet Scrap (“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 and the Pulawy rare earths
separation project in Poland. Both the Songwe and Pulawy projects have been selected as Strategic Projects
under the European Union Critical Raw Materials Act. Mkango signed a business combination agreement dated
2 July 2025 with CPTK to list the So ngwe Hill and Pulawy rare earths pr ojects on NASDAQ via a SPAC Merger
under the name Mkango Rare Earths Limited. Completion of the BCA remains subject to satisfaction of certain
conditions, including approval of the TSX-V.
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 Un ion (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. Generally, forwar d looking statements can be identified by the use of
words such as “targeted”, “plans”, “expects” or “is expected to”, “scheduled”, “estim ates” “intends”,
“anticipates”, “believes”, or variations of such words and phrases, or statemen ts that certain actions, events or
results “can”, “may”, “could”, “wou ld”, “should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. Readers are cautioned not to pl ace 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, know n 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 mate rially from any estimates or projecti ons of future performance or results
expressed or implied by such forward-looking statemen ts. 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
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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 Unit ed 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.
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
H&P Advisory Limited
Joint Broker
Andrew Chubb, Leif Powis, Jay Ashfield
UK: +44 20 7907 8500