Business
Maginito to Acquire Pioneering Rare Earth Magnet Recycler HyProMag
HIGHLIGHTS: Maginito (Mkango 90%; CoTec 10%) to increase ownership in HyProMag from 42% to 100% for £1 million (C$1.69 million) in cash and £1 million (C$1.69 m
About this update from Mkango Resources Ltd.
[{"type":"text","content":" HIGHLIGHTS: Maginito (Mkango 90%; CoTec 10%) to increase ownership in HyProMag from 42% to 100% for £1 million (C$1.69 million) in cash and £1 million (C$1.69 million) in Mkango shares, and a further £3 million (C$5.07 million) payable in four tranches of Mkango common shares subject to production and other milestones in the UK, Germany and US Cash component to be funded from the recent £1.5 million (C$2.54 million) investment by CoTec into Maginito as announced on 16 March 2023 Maginito to hold a 100% interest in HyProMag and 90% interest in HyProMag GmbH, post-acquisition and conversion of previously announced convertible loan, respectively Targeting first production from the UK in 2023 and Germany in 2024, with parallel technology roll-out into the US Major competitive advantages in rare earths magnet recycling sector, underpinned by approximately US$100m (C$135m) of research and development (“R&D”) expenditure at the University of Birmingham (“UoB”) and with associated project partners: Access to highly energy efficient, patented Hydrogen Processing of Magnet Scrap (“HPMS”) technology Ability to manufacture rare earth magnets with significantly reduced carbon footprint Maginito and CoTec have launched the roll-out of HPMS into the US: Evaluating the development of recycling, chemical processing, alloy and magnet manufacturing Scoping studies and site selection underway ahead of feasibility studies CoTec and Maginito to form 50/50 joint venture for US developments, with CoTec to fund feasibility study and project development costs Ongoing discussions with US Government, potential customers and recycling partners LONDON and VANCOUVER, British Columbia, May 16, 2023 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased to announce that it has entered into an agreement to increase its ownership in HyProMag Limited (“HyProMag”) from 42% to 100% for a cash and share consideration (the “Transaction”). The Transaction is conditional upon the approval of the TSX Venture Exchange and approval pursuant to the UK’s National Security and Investment (NSI) Act. Approval of the latter is expected no later than the third quarter of 2023. The consideration payable to the selling HyProMag shareholders (the “Vendors”) on completion of the Transaction will comprise £1m (C$1.69m) in cash and the is...