CoTec and Mkango Appoint Lead Engineers Pegasustsi and BBA To Perform Engineering, Procurement and Construction Management (EPCM) Services for Hypromag USA to Produce Rare Earth Magnets in the U.S.
CoTec Holdings Corp. (CTHCF) and Mkango Resources have appointed PegasusTSI and BBA for EPCM services for HyProMag USA's rare earth magnet recycling project in Dallas-Fort Worth, Texas. The project follows a Feasibility Study showing a NPV7% of US$262 million at current prices and US$503 million based on forecast prices.
The 24-month project targets first revenue in H1 2027, aiming to supply 10% of U.S. domestic demand for NdFeB magnets within five years. The DFW Hub will produce 750 metric tons annually of recycled sintered NdFeB magnets and 807 metric tons of associated co-products over a 40-year operating life. The facility will create 90-100 skilled manufacturing jobs and features a low CO2 footprint of 2.35 kg CO2 eq. per kg of product.
HyProMag USA is jointly owned 50:50 by CoTec and HyProMag , with the latter being fully owned by Maginito (79.4% Mkango, 20.6% CoTec).
CoTec Holdings Corp. (CTHCF) e Mkango Resources hanno nominato PegasusTSI e BBA per i servizi EPCM relativi al progetto di riciclo di magneti in terre rare di HyProMag USA a Dallas-Fort Worth, Texas. Il progetto segue uno Studio di Fattibilità che evidenzia un VAN al 7% di 262 milioni di dollari ai prezzi attuali e 503 milioni di dollari basati sulle previsioni di prezzo.
Il progetto, della durata di 24 mesi, punta a generare i primi ricavi nella prima metà del 2027, con l’obiettivo di soddisfare il 10% della domanda interna statunitense di magneti NdFeB entro cinque anni. Il centro DFW produrrà annualmente 750 tonnellate metriche di magneti NdFeB sinterizzati riciclati e 807 tonnellate metriche di co-prodotti associati, con una vita operativa di 40 anni. L’impianto creerà 90-100 posti di lavoro qualificati nel settore manifatturiero e avrà un’impronta di CO2 ridotta, pari a 2,35 kg di CO2 eq. per kg di prodotto.
HyProMag USA è di proprietà paritaria (50:50) tra CoTec e HyProMag, quest’ultima interamente controllata da Maginito (79,4% Mkango, 20,6% CoTec).
CoTec Holdings Corp. (CTHCF) y Mkango Resources han designado a PegasusTSI y BBA para los servicios EPCM del proyecto de reciclaje de imanes de tierras raras de HyProMag USA en Dallas-Fort Worth, Texas. El proyecto se basa en un Estudio de Factibilidad que muestra un VAN al 7% de 262 millones de dólares a precios actuales y 503 millones de dólares según precios previstos.
El proyecto de 24 meses apunta a obtener los primeros ingresos en el primer semestre de 2027, con el objetivo de cubrir el 10% de la demanda interna de EE.UU. de imanes NdFeB en cinco años. El centro DFW producirá anualmente 750 toneladas métricas de imanes NdFeB sinterizados reciclados y 807 toneladas métricas de coprodutos asociados durante una vida operativa de 40 años. La instalación generará entre 90 y 100 empleos calificados en manufactura y tendrá una baja huella de CO2 de 2,35 kg de CO2 eq. por kg de producto.
HyProMag USA es propiedad conjunta al 50:50 de CoTec y HyProMag, esta última totalmente propiedad de Maginito (79,4% Mkango, 20,6% CoTec).
CoTec Holdings Corp. (CTHCF)와 Mkango Resources는 텍사스 달라스-포트워스에 위치한 HyProMag USA의 희토류 자석 재활용 프로젝트에 대해 EPCM 서비스를 위해 PegasusTSI와 BBA를 선정했습니다. 이 프로젝트는 현재 가격 기준으로 7% 할인율 순현재가치(NPV) 2억 6,200만 달러이며, 예상 가격 기준으로는 5억 300만 달러임을 보여주는 타당성 조사를 기반으로 합니다.
24개월 기간의 이 프로젝트는 2027년 상반기에 첫 수익을 목표로 하며, 5년 내에 미국 내 NdFeB 자석 수요의 10%를 공급하는 것을 목표로 합니다. DFW 허브는 연간 750미터톤의 재활용 소결 NdFeB 자석과 807미터톤의 관련 부산물을 40년간 생산할 예정입니다. 이 시설은 90~100개의 숙련 제조 일자리를 창출하며, 제품 1kg당 2.35kg CO2eq의 낮은 탄소 발자국을 자랑합니다.
HyProMag USA는 CoTec과 HyProMag가 50:50으로 공동 소유하고 있으며, 후자는 Maginito가 100% 소유하고 있습니다(79.4% Mkango, 20.6% CoTec).
CoTec Holdings Corp. (CTHCF) et Mkango Resources ont nommé PegasusTSI et BBA pour les services EPCM du projet de recyclage d’aimants en terres rares de HyProMag USA à Dallas-Fort Worth, Texas. Le projet s’appuie sur une étude de faisabilité montrant une VAN à 7% de 262 millions de dollars US aux prix actuels et 503 millions de dollars selon les prévisions.
Le projet de 24 mois vise un premier revenu au premier semestre 2027, avec pour objectif de fournir 10% de la demande intérieure américaine en aimants NdFeB dans les cinq ans. Le centre DFW produira annuellement 750 tonnes métriques d’aimants NdFeB frittés recyclés et 807 tonnes métriques de coproduits associés sur une durée d’exploitation de 40 ans. L’installation créera 90 à 100 emplois qualifiés dans la fabrication et présente une faible empreinte carbone de 2,35 kg CO2 eq. par kg de produit.
HyProMag USA est détenue à parts égales (50:50) par CoTec et HyProMag, cette dernière étant entièrement détenue par Maginito (79,4% Mkango, 20,6% CoTec).
CoTec Holdings Corp. (CTHCF) und Mkango Resources haben PegasusTSI und BBA mit EPCM-Dienstleistungen für das Recyclingprojekt seltener Erdenmagnete von HyProMag USA in Dallas-Fort Worth, Texas, beauftragt. Das Projekt basiert auf einer Machbarkeitsstudie, die einen Kapitalwert (NPV) von 262 Millionen US-Dollar bei 7% Diskontierung zu aktuellen Preisen und 503 Millionen US-Dollar basierend auf Prognosepreisen zeigt.
Das 24-monatige Projekt zielt darauf ab, im ersten Halbjahr 2027 erste Einnahmen zu erzielen und innerhalb von fünf Jahren 10% der inländischen US-Nachfrage nach NdFeB-Magneten zu decken. Das DFW-Zentrum wird jährlich 750 metrische Tonnen recycelte gesinterte NdFeB-Magnete sowie 807 metrische Tonnen damit verbundene Nebenprodukte über eine Betriebsdauer von 40 Jahren produzieren. Die Anlage schafft 90-100 qualifizierte Arbeitsplätze in der Fertigung und weist mit 2,35 kg CO2-Äquivalent pro kg Produkt eine geringe CO2-Bilanz auf.
HyProMag USA befindet sich im gemeinsamen Eigentum von CoTec und HyProMag zu jeweils 50%, wobei Letztere vollständig im Besitz von Maginito ist (79,4% Mkango, 20,6% CoTec).
- NPV7% of US$262M at current prices, US$503M at forecast prices
- Targeting 10% of U.S. domestic NdFeB magnet demand within 5 years
- 40-year operating life with 1,557 metric tons total annual production capacity
- Creation of 90-100 skilled manufacturing jobs
- Low environmental impact with 2.35 kg CO2 eq. per kg of product
- 24-month project execution period before revenue generation
- Revenue generation not expected until H1 2027
- Project still requires final site selection and permitting
LONDON, UNITED KINGDOM AND VANCOUVER, BC / ACCESS Newswire / April 21, 2025 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V:MKA) ("Mkango") are pleased to announce that U.S.-based PegasusTSI Inc. ("PegasusTSI") and Canada-based BBA USA Inc. ("BBA") have been engaged to complete the HyProMag USA, LLC ("HyProMag USA") engineering, procurement and construction management ("EPCM") services for HyProMag USA's advanced stage rare earth magnet recycling and manufacturing project located in Dallas-Fort Worth, Texas (the "DFW Hub"). The award of the EPCM contract follows the November 2024 completion of the base case Feasibility Study for HyProMag USA[i] ("Feasibility Study"), which indicated a NPV
The project will be executed over a 24-month period with the work being undertaken from the PegasusTSI Tampa office, supported by an owner's team comprised of HyProMag Limited, CoTec and Mkango.
First revenue is targeted in H1 2027 following a Notice to Proceed ("NTP") expected in H2 2025 following completion of the detailed engineering design and value engineering phase. HyProMag USA is initially targeting to supply
Julian Treger, CoTec CEO commented: "The EPCM represents a significant milestone towards the construction of commercial-scale magnet recycling and production facilities, reshoring U.S. manufacturing capability and reducing dependence on foreign magnets and rare earths. Following the competitive bid process, we are looking forward to continuing to work closely with BBA and PegasusTSI to develop these facilities. As HyProMag USA progresses it will be working and collaborating with local, state and federal stakeholders. HyProMag USA is supported by the Minerals Security Partnership,[iii] which aims to accelerate the development of diverse critical minerals supply chains in cooperation with industry and other governments to support strategic projects."
Will Dawes, Mkango CEO commented:"We are very excited to see HyProMag USA's groundbreaking rare earth magnet recycling and manufacturing project proceed to the next stage of development. This project will make a major contribution to the creation of a more robust rare earth supply chain and a strong platform for further expansion in North America, complementing the ongoing HyProMag developments in the UK and Germany.
The detailed engineering design and value engineering phase will include the completion of sufficient engineering design works to support development of the AACE Class 2 capital cost estimate to update what was outlined in the Feasibility Study. This will also support the final site selection efforts which are to be completed in H1 2025 and allow the commencement of site permitting in line with the initial project schedule. Environment and permitting studies will be supported by U.S.-based Weston Solutions, Inc.
During this phase and prior to the NTP, HyProMag USA will aim to secure commercial arrangements with potential feed supply and product off-takers to meet ongoing financing obligations. Discussions with federal, state and municipal governments continue to progress. HyProMag USA has the potential to supply the United States with 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.
The Feasibility Study includes the DFW Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels[iv] and that it was initiating concept studies for further expansion and complementary "Long Loop" recycling[v]. The DFW Hub's annual production is expected to be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,557 metric tons NdFeB within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalising the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.
Also in March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block product.[vi]
Ownership
HyProMag USA is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited ("Maginito"), which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.
About HyProMag
HyProMag is commercializing Hydrogen Processing of Magnet Scrap (HPMS) recycling technology in the UK, Germany and the United States. HPMS technology was developed at the Magnetic Materials Group (MMG) at University of Birmingham, underpinned by approximately US
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 symbols CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.
For more information, please visit www.cotec.ca.
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 GmbH, 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 HPMS recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company.
Mkango also owns the advanced stage Songwe Hill rare earths project in Malawi and the Pulawy rare earths separation project in Poland. The Pulawy rare earths separation project has been selected as a Strategic Project under the European Union Critical Raw Materials Act. Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC Merger.
For more information, please visit www.mkango.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 Recycling Plants being developed by Maginito in the UK, Germany and the United States (the "Maginito Recycling Plants"), 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 Maginito Recycling Plants, and 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 press 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 because 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 CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
+1 604 992-5600
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes
Chief Executive Officer
will@mkango.ca
+1 403 444 5979
www.mkango.ca
@MkangoResources
Alexander Lemon
President
alex@mkango.ca
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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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.
[ii] Federal Register: 88 FR 9430, Pages 9430-9475 (46 pages). Department of Commerce, Bureau of Industry and Security: "The Effect of Imports of Neodymium-Iron-Boron (NdFeB) Permanent Magnets on the National Security."
[v] Conventional leach, extraction purification and precipitation process
View the original press release on ACCESS Newswire
FAQ
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