TIDMMKA
RNS Number : 2597O
Mkango Resources Limited
02 October 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
COTEC COMPLETES CONVERSION OF GBP2M MKANGO LOAN NOTE
TO INCREASE EQUITY POSITION IN MAGINITO FROM 10 PER CENT TO 20.6
PER CENT
London / Vancouver: October 2, 2023 - CoTec Holdings Corp.
(TSXV: CTH; OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd.
(AIM/TSX-V: MKA) ("Mkango") are pleased to announce that CoTec has
converted its GBP2 million convertible loan note in Mkango into
additional shares of Mkango's subsidiary Maginito Ltd.
("Maginito"). As a result of the conversion, CoTec's equity
position in Maginito has increased from 10 per cent to 20.6 per
cent. Maginito owns 100% of HyProMag Limited ("HyProMag").
In February 2023, CoTec and Maginito entered into a co-operation
agreement in relation to rare earth element ("REE") opportunities
in the United States. In early September 2023, CoTec and Mkango
entered into a binding letter agreement pursuant to which they have
agreed to form a 50:50 joint venture (the "Joint Venture") to
pursue the roll-out of HyProMag's innovative rare earth magnet
recycling technology in the United States. 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.
HyProMag's patented Hydrogen Processing of Magnet Scrap
technology ("HPMS") enables the recovery and recycling of rare
earth magnets embedded in scrap sources such as electronic waste,
electric motors and wind turbines using 88% less energy versus
primary mining to separation to metal alloy to magnet production.
HyProMag has the added capability to then remanufacture the
recovered material into rare earth magnets with a significantly
reduced carbon footprint. The HPMS technology, developed at the
University of Birmingham, UK and licensed by HyProMag, has
benefited from approximately $100 million in research and
development funding.
As announced on 14 September 2023, the roll-out of the HyProMag
technology in the US is continuing with ongoing scoping studies
ahead of the commencement of the feasibility study. Discussions
with the US Government, potential customers and recycling partners
have commenced and are ongoing. The US roll-out will be completed
in parallel with UK and German based developments and is expected
to benefit from operational experience and production ramp-up in
the UK and Germany. First production is expected in the UK in 2023
and in Germany in 2024. Revenue from the US operation is targeted
for 2025/2026.
Julian Treger, CoTec CEO commented: "With the Maginito
conversion completed our focus will be the operational roll out of
the HyProMag technology in the United States. This conversion
simplifies our investment structure in the exciting and
revolutionary HyProMag technology to a 20.6% equity interest in
Maginito and a direct 50% interest in the US operations."
"The Maginito investment is an example of the CoTec business
model of acquiring minority positions in disruptive technology
combined with joint venture participation at an operational level.
It also allows CoTec to commence, together with its other
operational opportunities, its transition from a technology
investment company to resource producer."
Will Dawes, Mkango CEO commented; "We view the completion of
CoTec's conversion as an endorsement of the implied value inherent
in Maginito and specifically the proprietary HPMS technology that
has potential to unlock a significant opportunity in the US market.
We look forward to working with CoTec and HyProMag as we focus on
the operational roll out of the technology and move into the next
phase of growth."
About Maginito
Maginito is a UK based company owned, following the conversion,
as to 79.4 per cent by Mkango and 20.6 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 EUR2.5 million (approximately C$3.6 million) 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 Mkango in the rare earths
sector. Mkango is listed on the AIM and the TSX Venture Exchange
("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 producer 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 TSX-
V and the OTCQB and trades under the symbol CTH and CTHCF
respectively. CoTec 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 CoTec 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. CoTec
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
CoTec and Mkango 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, including their expectations with
respect to the timing and benefits of the Joint Venture. Generally,
forward looking statements can be identified by the use of words
such as "plans", "expects" or "is expected to", "scheduled",
"targeted for", "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, the positive results of
feasibility studies on the various proposed aspects of Mkango's,
Maginito's and CoTec's activities, and those risks set out in
CoTec's and Mkango's public documents filed on SEDARplus. The
forward-looking statements contained in this news release are made
as of the date of this news release. Except as required by law,
Mkango 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, Mkango 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
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solicitation of an offer to buy any equity or other securities of
CoTec or Mkango in the United States. The securities of CoTec and
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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
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END
IOEMBBRTMTAMMBJ
(END) Dow Jones Newswires
October 02, 2023 02:00 ET (06:00 GMT)
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