Mkango Resources Limited - Hypromag USA Expands Detailed Engineering Phase
HyProMag USA is expanding its U.S. permanent magnet recycling project by including three HPMS vessels in the detailed design phase, up from the initially planned two vessels. The expansion requires an additional capital cost of US$7 million but increases the project's NPV7% to US$279 million at current market prices and US$593 million based on forecast prices.
The project includes a Texas Hub and two pre-processing facilities in South Carolina and Nevada. With the third HPMS vessel, annual production capacity will reach 750 metric tons of recycled sintered NdFeB magnets and 807 metric tons of NdFeB co-products over a 40-year operating life. The company aims to supply 10% of U.S. domestic NdFeB magnet demand within five years of commissioning.
Additionally, HyProMag USA is initiating concept studies to potentially triple the project's capacity and develop integrated long-loop chemical processing capabilities. A recent ISO-Compliant study confirmed the product's low carbon footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block product.
HyProMag USA sta espandendo il suo progetto di riciclaggio di magneti permanenti negli Stati Uniti, includendo tre impianti HPMS nella fase di progettazione dettagliata, rispetto ai due impianti inizialmente previsti. L'espansione richiede un costo di capitale aggiuntivo di 7 milioni di dollari, ma aumenta il valore attuale netto del progetto (NPV7%) a 279 milioni di dollari ai prezzi di mercato attuali e a 593 milioni di dollari basandosi sui prezzi previsti.
Il progetto comprende un Hub in Texas e due impianti di pre-trattamento in Carolina del Sud e Nevada. Con il terzo impianto HPMS, la capacità produttiva annuale raggiungerà 750 tonnellate metriche di magneti NdFeB sinterizzati riciclati e 807 tonnellate metriche di co-prodotti NdFeB nel corso di una vita operativa di 40 anni. L'azienda mira a fornire il 10% della domanda domestica di magneti NdFeB negli Stati Uniti entro cinque anni dalla messa in servizio.
Inoltre, HyProMag USA sta avviando studi concettuali per potenzialmente triplicare la capacità del progetto e sviluppare capacità integrate di lavorazione chimica a lungo termine. Uno studio recente conforme agli standard ISO ha confermato la bassa impronta di carbonio del prodotto, pari a 2,35 kg di CO2 eq. per kg di prodotto a blocchi sinterizzati NdFeB tagliati.
HyProMag USA está expandiendo su proyecto de reciclaje de imanes permanentes en EE. UU. al incluir tres recipientes HPMS en la fase de diseño detallado, en lugar de los dos recipientes inicialmente planificados. La expansión requiere un costo de capital adicional de 7 millones de dólares, pero aumenta el VAN del proyecto (NPV7%) a 279 millones de dólares a precios de mercado actuales y a 593 millones de dólares según los precios previstos.
El proyecto incluye un Hub en Texas y dos instalaciones de preprocesamiento en Carolina del Sur y Nevada. Con el tercer recipiente HPMS, la capacidad de producción anual alcanzará 750 toneladas métricas de imanes NdFeB sinterizados reciclados y 807 toneladas métricas de coproducidos NdFeB durante una vida operativa de 40 años. La empresa tiene como objetivo suministrar el 10% de la demanda nacional de imanes NdFeB en EE. UU. dentro de los cinco años posteriores a la puesta en marcha.
Además, HyProMag USA está iniciando estudios conceptuales para potencialmente triplicar la capacidad del proyecto y desarrollar capacidades integradas de procesamiento químico a largo plazo. Un estudio reciente conforme a ISO confirmó la baja huella de carbono del producto, que es de 2.35 kg de CO2 eq. por kg de producto de bloque sinterizado NdFeB cortado.
HyProMag USA는 미국에서 영구 자석 재활용 프로젝트를 확장하여 세 개의 HPMS 용기를 상세 설계 단계에 포함시키고 있으며, 이는 원래 계획된 두 개의 용기에서 증가한 것입니다. 이 확장은 추가 자본 비용으로 700만 달러가 필요하지만, 현재 시장 가격 기준으로 프로젝트의 NPV7%를 2억 7900만 달러로, 예측 가격 기준으로는 5억 9300만 달러로 증가시킵니다.
이 프로젝트에는 텍사스 허브와 사우스캐롤라이나 및 네바다에 두 개의 전처리 시설이 포함됩니다. 세 번째 HPMS 용기가 추가되면 연간 생산 능력이 750 메트릭 톤의 재활용된 NdFeB 자석과 807 메트릭 톤의 NdFeB 공동 제품에 도달하게 됩니다. 회사는 가동 시작 후 5년 이내에 미국 내 NdFeB 자석 수요의 10%를 공급하는 것을 목표로 하고 있습니다.
또한, HyProMag USA는 프로젝트 용량을 잠재적으로 세 배로 늘리고 통합된 장기 화학 처리 능력을 개발하기 위한 개념 연구를 시작하고 있습니다. 최근 ISO 준수 연구에서는 NdFeB 절단 소결 블록 제품 1kg당 2.35kg의 CO2 eq.의 낮은 탄소 발자국을 확인했습니다.
HyProMag USA étend son projet de recyclage de magnets permanents aux États-Unis en incluant trois récipients HPMS dans la phase de conception détaillée, contre deux récipients initialement prévus. L'expansion nécessite un coût de capital supplémentaire de 7 millions de dollars, mais augmente la valeur actuelle nette du projet (NPV7%) à 279 millions de dollars aux prix du marché actuels et à 593 millions de dollars sur la base des prix prévus.
Le projet comprend un Hub au Texas et deux installations de prétraitement en Caroline du Sud et au Nevada. Avec le troisième récipient HPMS, la capacité de production annuelle atteindra 750 tonnes métriques de magnets NdFeB recyclés et 807 tonnes métriques de co-produits NdFeB sur une durée de fonctionnement de 40 ans. L'entreprise vise à fournir 10 % de la demande intérieure de magnets NdFeB aux États-Unis dans les cinq ans suivant la mise en service.
De plus, HyProMag USA lance des études conceptuelles pour potentiellement tripler la capacité du projet et développer des capacités de traitement chimique intégrées à long terme. Une étude récente conforme aux normes ISO a confirmé la faible empreinte carbone du produit, qui est de 2,35 kg de CO2 eq. par kg de produit en blocs sinterisés NdFeB découpés.
HyProMag USA erweitert sein Recyclingprojekt für Permanentmagneten in den USA, indem es drei HPMS-Anlagen in die Detailplanungsphase aufnimmt, anstelle der ursprünglich geplanten zwei Anlagen. Die Erweiterung erfordert zusätzliche Investitionskosten von 7 Millionen US-Dollar, erhöht jedoch den Nettobarwert des Projekts (NPV7%) auf 279 Millionen US-Dollar zu aktuellen Marktpreisen und auf 593 Millionen US-Dollar basierend auf prognostizierten Preisen.
Das Projekt umfasst ein Hub in Texas und zwei Vorverarbeitungsanlagen in South Carolina und Nevada. Mit der dritten HPMS-Anlage wird die jährliche Produktionskapazität 750 metrische Tonnen recycelter NdFeB-Magnete und 807 metrische Tonnen NdFeB-Nebenprodukte über eine Betriebsdauer von 40 Jahren erreichen. Das Unternehmen hat sich zum Ziel gesetzt, innerhalb von fünf Jahren nach der Inbetriebnahme 10 % der inländischen NdFeB-Magnetnachfrage in den USA zu decken.
Darüber hinaus initiiert HyProMag USA Konzeptstudien, um die Projektkapazität potenziell zu verdreifachen und integrierte chemische Verarbeitungsfähigkeiten mit langer Laufzeit zu entwickeln. Eine kürzlich durchgeführte ISO-konforme Studie bestätigte die geringe CO2-Bilanz des Produkts von 2,35 kg CO2 eq. pro kg des geschnittenen NdFeB-Sinterblockprodukts.
- NPV7% increases to US$279M (current prices) with third HPMS vessel addition
- Modest US$7M incremental capital cost for significant capacity expansion
- 40-year operating life provides long-term business sustainability
- Low carbon footprint of 2.35 kg CO2 eq. per kg product
- Potential to triple capacity across multiple facilities
- Additional capital expenditure required for expansion
- Long-loop chemical processing capabilities still in concept phase
- 5-year timeline to reach target market share
HYPROMAG USA EXPANDS DETAILED ENGINEERING PHASE TO INCLUDE THREE HPMS VESSELS AND INITIATES CONCEPT STUDIES FOR FURTHER EXPANSION AND COMPLEMENTARY "LONG LOOP" RECYCLING
CALGARY, AB AND LONDON, UK AND VANCOUVER, BC / ACCESS Newswire / March 11, 2025 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) ("Mkango") are pleased to announce that HyProMag USA LLC ("HyProMag USA") will expand the upcoming detailed design phase of its U.S. permanent magnet recycling and manufacturing project (the "Project") to include three HPMSi vessels.
In addition, and concurrently, HyProMag USA will begin conceptual studies to evaluate further expansion to triple the capacity of the Project, versus that envisaged in the Feasibility Study, across the Project footprint of Fort Worth, Texas ("Texas Hub"), South Carolina and Nevada as well as integrated USA development of long loop chemical processing, which is complementary to the HPMS short-loop process. Long-loop chemical processing is used to process any material not suitable for short-loop recycling as well as swarf generated from magnet finishing. HyProMag USA is targeting to supply
The November 2024 base case Feasibility Study (the "Feasibility Study")iii, which was based on two HPMS vessels, indicated a NPV
Julian Treger, CoTec CEO commented: "The potential expansion of HyProMag USA is compelling from a value perspective as the modular design of the production hubs is expected to allow for significant upfront cost savings and optimization opportunities could result in even higher returns than the strong economics shown by the Feasibility Study. Additionally, it will also play a key role in supporting the US strategy of reshoring manufacturing capability, reducing dependance on foreign magnets and rare earths.
The increased production capacity could also allow the flexibility to produce a wider range of products and specialist magnets, further improving both financial returns and the company's ability to become a supplier of choice."
Will Dawes, Mkango CEO commented:"The HyProMag USA Feasibility Study highlighted the strong economics of the Project, with significant opportunities for further expansions, coupled with ancillary developments to add value, broaden the product suite and strengthen the competitive positioning."
The Feasibility Study included the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. It is envisaged that additional expansion capacity and downstream development could be added at either the Texas Hub and / or the two pre-processing facilities, which will be evaluated during the concept studies, as well as the potential to process additional primary feed if required to initially support the expansion. The modular nature of the production design should allow duplication with limited design adjustments and should benefit from the construction and ramp-up learnings of the Texas Hub, and commissioning of the UK and Germany operations. With the increased production capacity, the Project will generate additional NdFeB co-products suitable for long loop chemical processing. The opportunity to develop an integrated long loop chemical processing plant will also be evaluated during the concept studies.
Both long-loop and short-loop recycling technologies are underpinned by the HPMS technology, which liberates magnets from end-of-life scrap streams in a cost effective and energy efficient way to produce a recycled NdFeB alloy powder, which is manufactured into a magnet (via the short loop process) or into a rare earth carbonate or oxide (via the long loop chemical process). 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.viii
The Texas Hub's annual production with a third HPMS vessel will 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 that the third reactor will provide the Texas Hub with significant optionality to supply the U.S. market with additional NdFeB alloy powder. The detailed design will further incorporate debottlenecking and optimization of the three existing magnet lines at the proposed Texas Plant.
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 HPMS recycling technology in the UK, Germany and United States. HyProMag is also evaluating other jurisdictions, and in mid-2024 launched a collaboration with Envipro on rare earth magnet recycling in Japan. 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 symbol 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 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. 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
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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 successful conclusion of the MDA, 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 US (the "Maginito Recycling Plants"), the results of the Feasibility Study and 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 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 news 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
Canada: +1 604 992-5600
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.caalex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
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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.
i Patented Hydrogen Processing of Magnet Scrap (HPMS) technology developed at University of Birmingham, which liberates NdFeB magnets from end-of-life scrap streams in a cost effective and energy efficient way
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."
iii November 2024 independent HyProMag USA feasibility study undertaken by a multidisciplinary team appointed by CoTec and Mkango and led by independent engineers, Canada-based BBA USA Inc. ("BBA") and U.S. based PegasusTSI Inc. ("PegasusTSI") with other independent experts and support from University of Birmingham, HyProMag Ltd and HyProMag GmbH.
iv
v Current market prices ("Current Prices") for all NdFeB products sold in the U.S, excluding residual scrap, derived from U.S. 2024 price quotes, over the life of the asset
vi NPV does not include the economic benefit of any government or state incentives, or carbon pricing
vii Forecast market prices ("Forecast Prices") are the prices for all NdFeB products sold in the U.S, excluding residual scrap feed, with the rare earth price component thereof derived from the latest rare earth oxide price forecasts from Q4 (2024) Adamas Intelligence, over the life of the asset
viii Cut Sintered Block Product is the final product prior to nickel plating and magnetization
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SOURCE: Mkango Resources Ltd.
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FAQ
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