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Mkango Resources Ltd (2)
Symbol MKA
Shares Issued 295,036,906
Close 2024-12-05 C$ 0.145
Market Cap C$ 42,780,351
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Mkango, Cotec begin RFP process for EPCM provider

2024-12-05 09:32 ET - News Release

Also News Release (C-CTH) Cotec Holdings Corp

Mr. William Dawes of Mkango Resources reports

MKANGO RESOURCES LIMITED ANNOUNCES HYPROMAG USA TO APPOINT EPCM PROVIDER

Cotec Holdings Corp. and Mkango Resources Ltd. have initiated a request-for-proposal process from leading engineering, procurement and construction management (EPCM) providers to complete the detailed engineering design, procurement and construction management phase for HyProMag USA LLC's state-of-the-art rare earth magnet recycling and manufacturing project in the United States.

The results of the positive feasibility study for the project were announced on Nov. 25, 2024.

The detailed engineering design phase will include the completion of sufficient engineering design works to support development of the AACE Class 1 capital cost estimate to update that of the feasibility study. This will also support the final site selection efforts, which are to be completed in the first half of 2025 and allow the commencement of site permitting in line with the initial project schedule. This targets initial revenue in Q1 2027.

Following completion of the detailed engineering design phase, a decision is expected to be taken mid-2025 as to whether HyProMag USA will proceed with the final procurement and construction of the project.

Julian Treger, chief executive officer of Cotec, commented: "Following the successful completion of the independent feasibility study, we are looking forward to working with leading EPCM providers to build these facilities. The detailed engineering design phase is expected to deliver further cost savings and design improvements, which should enhance the project's metrics. The company is now focused on working with its stakeholders and potential partners in securing funding from the U.S. government, financing, offtake and feed supply. The end-to-end process of recycling end-of-life NdFeB [neodymium/iron/boron] magnets into new sintered NdFeB magnets is supported by the Minerals Security Partnership, which aims to accelerate the development of secure, diverse and sustainable supply chains for critical minerals."

Will Dawes, chief executive officer of Mkango, commented: "Momentum continues on the project following the positive results from the feasibility study announced last week, and we are very excited to be pushing forward with the EPCM selection process. This important project will help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States and will be underpinned by rigorous design and engineering standards. We look forward to working with the project team as we move to the next stage of development."

Ownership

HyProMag is 100 per cent owned by Maginito Ltd., which is owned on a 79.4-per-cent/20.6-per-cent basis by Mkango and Cotec. HyProMag USA is owned 50/50 by Cotec and Maginito.

About HyProMag

HyProMag is commercializing the patented hydrogen processing of magnet scrap (HPMS) recycling technology in the United Kingdom, Germany and United States. HyProMag is also evaluating other jurisdictions, and, in mid-2024, launched a collaboration with Envipro on rare earth magnet recycling in Japan. HPMS technology was developed at the Magnetic Materials Group (MMG) at University of Birmingham, underpinned by approximately $100-million (U.S.) of research and development financing 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.

The MMG is internationally recognized for its work on the circular economy of rare earth magnets. The group has made major contributions to research and industrial application of hydrogen for processing of magnets. Prof. Emeritus Harris pioneered the initial work on hydrogen decrepitation (HD), currently used worldwide to produce magnets, and co-wrote the 1986 paper on the world's first hydrogen-based sintered magnet. Today, almost all NdFeB magnet production and recycling methods take advantage of the HD process.

The HPMS process recovers NdFeB permanent magnets from end-of-life scrap streams in the form of a demagnetized NdFeB metallized alloy powder for remanufacture into recycled NdFeB magnets with a significantly reduced carbon footprint and has major competitive advantages versus other magnet recycling methods using chemical processes.

About Cotec Holdings Corp.

Cotec is a publicly traded investment issuer listed on the TSX Venture Exchange and the OTCQB and trades under the symbol CTH and CTHCF, respectively. Cotec is an ESG-focused (environment, social and governance) company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities as it transitions into a mid-tier mineral resource producer.

Cotec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. It has made four investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.

About Mkango Resources Ltd.

Mkango is listed on the AIM (Alternative Investment Market) 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 Ltd., 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 United Kingdom and Germany, respectively, and a 100-per-cent interest in Mkango Rare Earths United Kingdom Ltd. (Mkango U.K.), focused on long-loop rare earth magnet recycling in the United Kingdom through a chemical route.

Maginito and Cotec are also rolling out HyProMag's recycling technology into the United States through the 50/50-owned HyProMag USA joint venture company. HyProMag is also evaluating other jurisdictions and recently launched a collaboration with Envipro on rare earth magnet recycling in Japan.

Mkango also owns the advanced-stage Songwe Hill rare earth project and an extensive rare earth, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi as well as the Pulawy rare earth separation project in Poland.

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