MKANGO RESOURCES
LTD.
550 Burrard
Street
Suite
2900
Vancouver
BC V6C
0A3
Canada
30 August
2024
Mkango Releases Second Quarter 2024
Results
LONDON and VANCOUVER, British Columbia, 30 August
2024 - Mkango Resources Ltd (AIM / TSX-V:MKA) (the "Company" or
"Mkango") announces that it has released the Financial Statements
and Management's Discussion and Analysis for the three month period
ending 30 June 2024. The reports are available under the Company's
profile on the SEDARplus website (https://www.sedarplus.ca/landingpage/)
and on the Company's website (https://mkango.ca/investors/financials/).
To view the Financial Statements, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/2288C_1-2024-8-29.pdf
To view the Management Discussion and Analysis,
please click here: http://www.rns-pdf.londonstockexchange.com/rns/2288C_2-2024-8-29.pdf
RECENT
FINANCINGS:
Subsequent to
quarter end, the Company announced the following
financings:
·
On 21 August 2024, the
Company conditionally raised gross proceeds of £1.25 million
(approximately US$1.58 million) through the issuance, on a private
placement basis, of 25,000,000 Units of the Company at a price of
£0.05 per Unit (approximately US$0.063). A Unit consists of one
common share of the Company and one warrant. Each warrant will
entitle the holder to acquire one common share at a price of £0.07
(approximately US$0.089) per common share for a period of three
years following the closing of the subscription which is expected
to close on or about 5 September 2024. This placing will allow the
Company to acquire additional equipment for the 2025 commercial
development of HyProMag's rare earth magnet recycling operations at
Tyseley Energy Park in Birmingham, UK and its recycling operation
at Pforzheim, Germany, in addition to increasing working
capital.
·
On 21 August
2024, EIT RawMaterials provided funding of €200,000 (approximately
US$214,111). This will fund the commencement of process
optimisation for the Songwe Hill Rare Earths Project in Malawi, a
future source of mixed rare earth carbonate feed for the Pulawy
Project.
·
Following the £1.25m (US$1.58m)
raised in August 2024 from existing shareholders and the investment
from EIT, Mkango remains well positioned to cement its leading
position and early mover advantage in rare earth magnet
recycling.
·
On 29 August
2024, it was announced that HyProMag GmbH ("HyproMag Germany") is
participating in the €8 million grant funded GREENE project, of
which HyProMag Germany will receive €350,125.
SECOND QUARTER
HIGHLIGHTS:
·
During the second quarter, Mkango
continued to advance its recycling interests in the UK and Germany
towards commercial production in 2025 via HyProMag. In parallel,
the Company progressed the on-going feasibility study for
HyProMag USA, LLC ("HyProMag
USA"). It is reviewing strategic options for the Songwe Hill
Rare Earths Project and Pulawy Rare Earths Separation Project in
Malawi and Poland, respectively. Discussions are ongoing with potential
strategic investors, project finance providers, grant funding
bodies and other sources, to support recycling scale-up
opportunities and further technology roll-out.
·
During the period, Mkango
Rare Earths UK ("Mkango UK") successfully commissioned a pilot
plant producing separated magnet rare earths
(neodymium/praseodymium and dysprosium/terbium carbonates or
oxides) via a long-loop recycling process.
·
A non-binding Memorandum of
Understanding ("MoU") was signed between HyProMag and Envipro
Holdings Inc. ("Envipro") to launch a collaboration on rare earth
magnet recycling in Japan and the United Kingdom.
·
Mkango completed a
fundraising of £750,000 (US$955,000) in April 2024, including a
£150,000 (US$191,000) investment by Mkango CEO William
Dawes.
·
Additionally, the Company
undertook a significant cost-cutting exercise in the quarter, and
focused its activities on the recycling business, enabling a 35%
reduction in ongoing operating cost requirements for the
business.
·
Loss after tax for the
quarter ended 30 June 2024 was US$659,320 compared to US$1,085,092
for the quarter ended 30 June 2023.
OTHER
SUBSEQUENT EVENTS:
·
On 15 July 2024, the
findings of the mid-project review for the Bankable Feasibility
Study ("U.S. Feasibility Study") for HyProMag USA were announced.
Canada-based BBA USA Inc. ("BBA") and U.S.-based PegasusTSI Inc.
("PegasusTSI") have been engaged to complete the U.S. Feasibility
Study, and to engineer and design its REE magnet recycling plants
and a production facility in the United States. HyProMag USA has
the potential to supply the U.S. market with a sustainable, long
term domestic supply of neodymium/iron/boron (NdFeB) permanent
magnets to enable the creation of secure, low carbon and traceable
rare-earth supply chains. With completion of the U.S. Feasibility
Study expected by the end of 2024, a positive production decision
in H1 2025 is expected to result in initial revenue from HyProMag
USA in H2 2026.
·
In late July 2024, Lancaster
Exploration Limited, a British Virgin Islands company and Lancaster
Exploration Limited, a Malawi company ‒ both 100% owned subsidiaries of
Mkango ‒ and the Government of Malawi signed
the Mineral Development Agreement
("MDA") for the
Songwe Hill Rare Earths Project ("Songwe Hill") in Malawi. This is
expected to enable further value to be unlocked from the
Songwe Hill and Pulawy rare earth separation plant projects as part
of the Company's ongoing evaluation of strategic options for these
assets. The
Feasibility Study for Songwe Hill and subsequent work identified a
number of areas for potential cost optimisation, and the Company
continues to evaluate these and other cost reduction opportunities
in light of the currently weak rare earth market pricing
environment.
NEAR TERM
CATALYSTS:
·
Completion of
HyProMag USA
Feasibility Study is targeted by the end of 2024. The scope of
operations comprises a hub and spoke model, with three HPMS spokes
and one magnet manufacturing hub located in Texas. A production
decision for HyProMag USA is expected in H1 2025.
·
Full commissioning of the
short-loop HPMS recycling plant in the UK and initial commercial
sales of NdFeB by HyProMag are targeted for Q1
2025.
·
HyproMag Germany first
commercial production in Germany is targeted for
2025.
INVESTOR
WEBINAR:
The Company will host an Investor Webinar on
Thursday 5th September at 5pm UK time / 12pm Eastern
Time. Please register and submit any questions via the following
link:
Webinar: Mkango Corporate Update September 2024 by Share Talk
(bigmarker.com)
About Mkango Resources Ltd.
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
Germany, 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.
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.
For more information, please
visit www.mkango.ca
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
UK: +44 20 3470 0470
Alternative
Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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.