MKANGO RESOURCES
LTD.
550 Burrard
Street
Suite
2900
Vancouver
BC V6C
0A3
Canada
HYPROMAG TO COLLABORATE WITH
ENVIPRO, A LEADING RECYCLING AND MATERIALS
TRADING COMPANY IN
JAPAN
Highlights
· HyProMag has launched a
collaboration with Envipro on rare earth magnet recycling in Japan
and the United Kingdom - Mkango has a 79.4% indirect interest in
HyProMag, via Maginito
· Envipro was established in
1950 and is a leading recycling and materials trading company,
listed on Tokyo Stock Exchange and based in Shizuoka, Japan, with
2023 sales of over US$300 million, handling scrap
volumes of 625,000 tonnes, and a global footprint including the
United Kingdom
· The collaboration encompasses
the following:
o Joint marketing of HyProMag
recycling technology solutions and recycled magnets in
Japan
o Recycling trials to be
carried out in UK and Japan on NdFeB scrap supplied by
Envipro
o Analysis of the NdFeB scrap
supply market and offtake opportunities in Japan
o Collaboration on potential
HyProMag recycling technology development in
Japan.
· Mkango continues to evaluate
opportunities to expand its interests in rare earth magnet
recycling globally through joint ventures, collaboration, marketing
and offtake agreements.
London / Vancouver: June 10, 2024 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is
pleased to announce that pursuant to a non-binding Memorandum of
Understanding ("MoU"), HyProMag Limited ("HyProMag") has launched a
collaboration with Envipro Holdings Inc. ("Envipro") on rare earth
magnet recycling in Japan and the United Kingdom (the
"Collaboration").
Will Dawes, Chief Executive of Mkango stated:
"This is the
first step in the roll out of HyProMag's rare earth magnet
recycling technology into Japan and other Asian markets, and we are
very excited to work with Envipro. We see Japan as a major growth
opportunity for Mkango and HyProMag, given its substantial and
longstanding rare earth market presence and strategic alignment
with the development of more robust rare earth supply chains and
the objectives of the Minerals Security Partnership, of which Japan
is a member."
Dave Kennedy, Director of HyProMag
stated: "Japan has been at the
forefront of developments in the application of sintered NdFeB
magnet applications since the invention of this magnet type by
Sagawa at Sumitomo Special Metals in 1983. Very little end of life
recycling has been achieved in the intervening years and we are
pleased to be working with Envipro to unlock the potential for
recovering critical resources in Japan."
Shinobu Tachibana, Envipro Holdings Inc. NEWSCON INC. UK
representative stated:
"Envipro is a global-scale recycling company,
developing state-of-the-art-technologies and know-how in the
recycling sector. Our goal is to help transform the societies from
a linear economy to a circular model. Japan has many industries
that use NdFeB magnets in their products, however, recycling of
NdFeB magnets has been very limited to date because conventional
recycling processes for NdFeB magnets, being de-magnetising,
shredding, sorting, and wet metal smelting, are very costly,
inefficient and environmentally unfriendly. HPMS is a revolutionary
technology for both recycling and re-manufacturing of NdFeB
magnets, which provides solutions for these cost and efficiency
challenges. Envipro and HyProMag will collaborate on engagement
with potential Japanese customers to further the development of
HPMS technology in Japan and adopt it for the recycling of
rare-earth materials in their products."
HyProMag is commercialising Hydrogen
Processing of Magnet Scrap ("HPMS") recycling technology in the UK,
Germany and United States. 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.
Near term milestones for the
recycling business include full commissioning of the short-loop
HPMS recycling plant in the UK with initial commercial sales of
NdFeB by HyProMag targeted for H2 2024, commissioning of the pilot
scale (long-loop, chemical route) recycling plant in UK to produce
rare earth oxides and carbonates in H1 2024 and completion of the
USA Feasibility Study in H2 2024. Initial production in the UK is
targeted at 25-30tpa NdFeB with significant expansion
potential.
HyProMag's HPMS recycling technology
was selected by the Minerals Security Partnership ("MSP") for
support as one of its key projects. The technology was selected
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.
About Envipro
Envipro was founded in 1950 and is
listed on the Tokyo Stock Exchange (TSE) Prime Market. Envipro has
an extensive business portfolio which includes recycling of a wide
range of wastes, end of life products, and Lithium ion batteries.
The company also operates in the international trading sector for
recycled/recovered materials and used vehicles.
In its Resource circulation business
sector, Envipro is a pioneer of technology driven recycling in
Japan. It has many Materials Recovery Facilities (MRF) which can
accept a wide variety of industry wastes from buildings and
factories. These state-of-the-art MRFs generate the best quality
recovered materials which includes the ferrous /non-ferrous metals
and plastic scraps.
In its Global Trading business
sector, Envipro has many scrap and used car parts yards all over
Japan. This sector also has the logistic service company for third
parties. Products are bought and sold internationally with Envipro
offices located in Chile, Vietnam, UK and Netherlands.
The newly growing sector is Lithium
ion Battery Recycling. This sector also has state-of-the-art MRFs
which accept factory defects and end-of-life batteries. MRFs
recovers some critical materials and metals such as cobalt,
lithium, nickel, copper and graphite.
Envipro's goal is to create a
sustainable society in which "the life of all things is utilized
and put to good use." Its strategic concept for creating such a
society is "Lead a Circular Economy (CE)". Focusing on the reuse,
recycling and remanufacturing of materials, the Company will
promote the finest technologies for resource circulation across
supply chains, and the development of collaboration systems of
forward and reverse logistics through partnerships with
manufacturers. Through these engagements, it will grow into a
company that is truly appreciated in a society which is
experiencing a transition to the circular economy.
For
more information, please visit https://www.envipro.jp/en/
About Mkango
Mkango is listed on the AIM and the
TSX-V. 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, 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 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 HyProMag's 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 and an extensive rare earths,
uranium, tantalum, niobium, rutile, nickel and cobalt exploration
portfolio in Malawi, and the Pulawy rare earths separation project
in Poland. Discussions with the Government of Malawi in relation to
the Mining Development Agreement for Songwe Hill are
ongoing.
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 (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,
forward looking statements can be identified by the use of words
such as "targeted", "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,
receipt of TSX-V approval for the Subscription, the availability of
(or delays in obtaining) financing to develop Songwe Hill, and the
various recycling plants in the UK, Germany and the US as well as
the separation plant in Poland, 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
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 various recycling
and separation plants of Mkango and Maginito and future investments
in the United States pursuant to the 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, the Company disclaims 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,
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
Alexander Lemon
Chief Executive
Officer
President
will@mkango.ca
alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP
Angel Corporate Finance LLP
Nominated Adviser and Joint
Broker
Jeff Keating, Caroline Rowe, 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
mkango@tavistock.co.uk
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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 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.