TIDMMKA
RNS Number : 3814M
Mkango Resources Limited
14 September 2023
MKANGO RESOURCES LTD. COTEC HOLDINGS CORP.
550 Burrard Street 755 Burrard Street
Suite 2900
Suite 428
Vancouver
Vancouver
BC V6C 0A3
V6Z 1X6
Canada
Canada
MKANGO SUBSIDIARY, MAGINITO, AND COTEC FORM US JOINT VENTURE
London / Vancouver: September 14, 2023 - CoTec Holdings Corp.
(TSXV: CTH; OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd.
(AIM/TSX-V: MKA) ("Mkango") are pleased to announce that CoTec and
Maginito Limited ("Maginito") have entered into a binding letter
agreement pursuant to which they have agreed a 50:50 joint venture
(the "Joint Venture") in relation to the United States roll-out of
HyProMag's rare earth magnet recycling technology. HyProMag's
technology will be sublicenced to the new Joint Venture company,
HyProMag US, on formation.
HyProMag is 100 per cent owned by Maginito Limited ("Maginito"),
which is owned on a 90:10 basis by Mkango and CoTec. HyProMag is
commercialising rare earth magnet recycling using Hydrogen
Processing of Magnet Scrap (HPMS) technology in the UK, Germany and
United States, with first production expected in the UK in 2023 and
in Germany in 2024. Revenue from the US Joint Venture is targeted
for 2025/2026.
The Joint Venture will initially be focused on completing a
scoping study and a bankable feasibility study ("Feasibility
Study") for the deployment of three HPMS vessels utilizing the
HyProMag technology and one magnet manufacturing facility in the US
(combined the "US Project"). The Feasibility Study is expected to
be completed in 2024. Following completion of the Feasibility
Study, CoTec and Mkango would make a joint decision on whether the
Joint Venture will proceed with the construction of the US
Project.
CoTec will fund the initial operations of the Joint Venture,
including the costs of the Feasibility Study. If the Joint Venture
proceeds with the construction of the US Project, CoTec will also
be responsible for funding all the development costs of the US
Project, with a total expected funding of GBP30 million to GBP50
million during the first three years post completion of the
Feasibility Study, subject to results of the Feasibility Study. All
funding provided by CoTec would be in the form of shareholder
loans. CoTec and Mkango also expect that the Joint Venture will
seek US government funding for the US Project.
The parties have agreed that certain long lead items could be
pre-ordered to expedite, subject to approval, the development of
the US Project. A comprehensive joint venture agreement dealing
with all other commercial aspects of the US Project, consistent
with the terms of the existing cooperation agreement between CoTec
and Mkango, will be agreed by the parties in parallel with the
completion of the Feasibility Study.
Julian Treger, CoTec CEO commented; "This is a major step
forward for CoTec and Mkango/Maginito and we are looking forward to
working with the Mkango and HyProMag teams on this very exciting,
proven and much needed technology in the US targeting the long-term
supply of low cost, sustainable recycled rare earth magnets.
"The US presents a significant opportunity for the HyProMag
technology and the technical skills of Mkango and HyProMag combined
with CoTec's commercial strength could potentially provide
shareholders with a unique and robust value proposition in the rare
earth industry in the right jurisdiction at the right time. "
"We look forward to working and collaborating with local, state
and federal stakeholders targeting the completion of the
feasibility study" .
Will Dawes, Mkango CEO commented; "We see a very significant
opportunity in the US market and look forward to working with CoTec
and HyProMag as we move into the next phase of growth."
"Less than 5 per cent of rare earth magnets are currently
recycled from end-of-life products. Increasing recycling rates via
HyProMag's HPMS technology solution to unlock this new potential
source of rare earths, thereby avoiding waste to landfill and
significantly reducing the carbon footprint, can make a major
contribution to creating more sustainable and robust rare earth
supply chains across multiple jurisdications. "
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 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. HyProMag's company presentation can be viewed via the
following link: HyProMag Corporate Presentation
Maginito
Maginito is a UK based Company owned 90 per cent by Mkango and
10 per cent by CoTec. It is focused on developing green technology
opportunities in the rare earths supply chain, encompassing
neodymium (NdFeB) magnet recycling as well as innovative rare earth
alloy, magnet, and separation technologies.
Maginito holds a 100 per cent interest in HyProMag and a 90 per
cent direct and indirect interest (assuming conversion of
Maginito's recently announced convertible loan) in HyProMag GmbH,
focused on short loop rare earth magnet recycling in the UK and
Germany, and a 100 per cent interest in Mkango Rare Earths UK Ltd
("Mkango UK"), a company focused on long loop rare earth magnet
recycling in the UK via a chemical route.
About Mkango Resources Ltd.
Mkango's corporate strategy is to develop new sustainable
primary and secondary sources of neodymium, praseodymium,
dysprosium and terbium to supply accelerating demand from electric
vehicles, wind turbines and other clean technologies. This
integrated Mine, Refine, Recycle strategy differentiates Mkango
from its peers, uniquely positioning the Company in the rare earths
sector. Mkango is listed on the AIM and the TSX-V.
Mkango is developing its flagship Songwe Hill rare earths
project ("Songwe") in Malawi with a Definitive Feasibility Study
completed in July 2022 and an Environmental, Social and Health
Impact Assessment approved by the Government of Malawi in January
2023.
In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading
chemical have agreed to work together towards development of a rare
earth separation plant at Pulawy in Poland (the "Pulawy Separation
Plant") to process the purified mixed rare earth carbonate produced
at Songwe Hill.
Mkango also has an extensive exploration portfolio in Malawi,
including the Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt
project.
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the
Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades
under the symbol CTH and CTHCF respectively. The Company is an
environment, social, and governance ("ESG")-focused 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 the
Company 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. The
Company has made four investments to date and is actively pursuing
operating opportunities where current technology investments could
be deployed.
For more information, please visit www.cotec.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 and CoTec. 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. 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, the availability of (or delays in
obtaining) financing to develop Songwe Hill, the Tyseley Recycling
Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot
Plant, the Pulawy Separation Plant, 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 Maginito's
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 Tyseley Recycling
Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot
Plant, the Pulawy Separation Plant and future investments in the
United States pursuant to the proposed 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 and CoTec disclaim
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 and CoTec undertake 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, 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
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
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 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.
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END
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September 14, 2023 02:00 ET (06:00 GMT)
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