Highlights
- Mkango increases its interest in HyProMag from 25.0% to 41.6% following the exercise by HyProMag of its right to convert into shares of HyProMag the £200,000 convertible loan which formed part of the £500,000 financing package completed in January 2020
- Cash retained by HyProMag will be used to support the scale up of the patented Hydrogen Processing of Magnet Scrap (HPMS) technology at University of Birmingham and Tyseley Energy Park, centres of excellence for magnetic materials, green technology and clean energy innovation
- HyProMag is set to become the UK’s first producer of recycled, sintered NdFeB rare earth magnets and materials, as used in electric vehicles, wind turbines and consumer electronics, further benefiting from an estimated 88% lower energy usage and close to zero human toxicity versus primary mining to separation to metal alloy to magnet production
- Mkango is evaluating further complementary opportunities to expand its position in rare earth recycling, benefiting from its increased strategic interest in HyProMag with associated offtake and supply rights, and HyProMag’s early-mover competitive advantage in a sector with high technological barriers to entry
LONDON and VANCOUVER, British Columbia, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce that it has increased its interest in HyProMag from 25% to 41.6% following the exercise by HyProMag of its right to convert into shares of HyProMag the £200,000 convertible loan which formed part of the £500,000 financing package completed in January 2020. HyProMag is pioneering commercialisation of short loop magnet recycling via the patented Hydrogen Processing of Magnet Scrap (HPMS) technology. The HPMS process for extracting and demagnetising neodymium iron boron (“NdFeB”) alloy powders from magnets embedded in scrap and redundant equipment, was originally developed within the Magnetic Materials Group at the University of Birmingham and subsequently licenced to HyProMag.
Rare earth magnets play a key role in clean energy technologies including electric vehicles and wind turbine generators, and they are also a key component in electronic devices including mobile phones, hard disk drives and loudspeakers.
The UK has no domestic source of primary rare earths. The development of domestic sources of recycled rare earths via HPMS, a homegrown technology, is a significant opportunity for the UK to fast-track the development of sustainable and competitive rare earth magnet production. The short loop recycling processes which are being scaled up by HyProMag will have a significant environmental benefit, requiring 88% less energy compared to conventional production of magnets from primary sources and generating an estimated 98% saving in human toxicity.
Mkango has established a new UK subsidiary, Mkango Rare Earths UK Limited, to develop complementary opportunities in rare earth recycling and green technologies in the UK, and the Company is working closely with HyProMag and University of Birmingham to capitalise on growth opportunities.
Mkango’s 41.6% interest in HyProMag is held via 100% owned subsidiary, Maginito Limited (“Maginito”), which has an option to increase its interest in HyProMag up to 49%. Maginito has the first right to supply primary production, if required for blending with recycled production from HyProMag, as well as product offtake and marketing rights.
William Dawes, Chief Executive of Mkango, stated: “We are very pleased to increase our interest in HyProMag, which has the technology, team and network of partnerships to unlock the supply chain for rare earth magnet recycling. We look forward to supporting its future growth as it scales up to commercial production and developing new opportunities for collaboration in the recycling sector. Recycling is a key component of Mkango’s “mine, refine, recycle” strategy and will become an increasingly important part of the rare earth supply chain in the UK, Europe and elsewhere.”
https://www.globenewswire.com/news-release/2021/11/03/2326034/0/en/Mkango-Increases-Interest-in-Rare-Earth-Magnet-Recycler-HyProMag-to-42.html