Maginito, a 90 percent owned subsidiary of Mkango Resources Limited a TSX.V and Aim stock exchange listed company, has entered into an agreement to acquire 100 percent of the United Kingdom (UK)-based HyProMag Limited.
HyProMag Limited is a technology company of the University of Birmingham while Maginito is a Mkango's company 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.
Following the transaction, Maginito will hold a 100 percent interest in HyProMag Limited focused on short loop rare earth magnet recycling in the UK, a 90 percent direct and indirect interest in HyProMag GmbH, a company focused on short loop rare earth magnet recycling in Germany, and a 100 percent 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.
Mkango CEO William Dawes said in an interview on Friday that a new USA company is also in the process of being formed to develop rare earth recycling opportunities in the United States.
"Since acquiring our initial interest in HyProMag in 2020, we have seen the company grow from strength to strength, de-risking and further scaling-up the patented HPMS rare earth magnet recycling technology, building the team and developing further industry partnerships, all against the backdrop of growing interest in recycling and sustainable rare earth supply chains. We look forward to working closely with the HyProMag team as we continue to support the growth of the business," said Dawes.
HyProMag is establishing short loop recycling facilities for NdFeB magnets at Tyseley Energy Park in Birmingham, UK and other locations using the patented HPMS process to provide a sustainable solution for the supply of NdFeB magnets and alloys for a wide range of markets including, for example, automotive and electronics.
Short loop magnet recycling is expected to have a significant environmental benefit, requiring an estimated 88% less energy versus primary mining to separation to metal alloy to magnet production.
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.
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 and is currently awaiting a Government of Malawi agreement and approval of a Win Win-Mining Development Agreement for the Songwe Hill rare earths mining project.