Maginito is 75.5% owned by Mkango, which is completing a Feasibility Study for the Songwe Hill rare earths project in
Consistent with Maginito’s strategy focused on downstream opportunities relating to the rare earths supply chain, the Transaction will generate potential synergies, such as first right to supply primary production if required for blending with recycled production from HyProMag, as well as product offtake and marketing rights, leading to enhanced marketing flexibility and access to downstream markets for rare earth permanent magnets, which are critical materials for electric vehicles, wind turbines, consumer electronics and other technology applications.
Highlights of the Transaction include:
- HyProMag has licenced a patented process for extracting and demagnetising neodymium iron boron (“NdFeB”) alloy powders from magnets embedded in scrap and redundant equipment named HPMS (Hydrogen Processing of Magnet Scrap). This was originally developed within the
Magnetic Materials Group (“MMG”) at theUniversity of Birmingham (“UoB”). - Maginito has invested £300,000 for an initial 25% interest in HyProMag and provided a £200,000 convertible loan facility, both of which will be fully funded from Maginito’s existing cash resources which are earmarked for such strategic investments. Maginito has a four-year option to increase its interest in HyProMag to up to 49% by investing an additional £1 million. Maginito has a right of first refusal to acquire the balance of HyProMag.
- The founding directors of HyProMag, comprising Professor Emeritus
Rex Harris , former Head of the MMG, ProfessorAllan Walton , current Head of the MMG, and two Honorary Fellows, DrJohn Speight and MrDavid Kennedy , are leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, and have significant industry experience. Pursuant to the Transaction, HyProMag has appointedWilliam Dawes , a Director of Maginito and CEO of Mkango, to join theBoard of HyProMag . - Maginito’s initial investment of £300,000 will fully satisfy HyProMag’s matched funding requirements for the three year, £2.6 million Innovate
UK grant funded project, “Rare-Earth Recycling for E-Machines” (“RaRE”), which aims to establish a pilot rare earth magnet recycling facility at Tyseley Energy Park,Birmingham (“Tyseley”), to produce sintered rare earth (NdFeB) magnets for use in new electric motor designs for automotive use, and includesAdvanced Electrical Machines Research Limited and UoB as collaborators.
About HyProMag
HyProMag’s strategy is to establish a recycling facility for NdFeB magnets at Tyseley in
About
Mkango's primary business is exploration for rare earth elements and associated minerals in the
The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in
The main exploration targets in Mkango’s remaining three 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon, in the Chimimbe Hill licence, nickel and cobalt, and in the Mchinji licence, nickel, cobalt, base metals and graphite.
Mkango also holds a 75.5% interest in Maginito with the balance owned by Talaxis. Maginito is focused on downstream opportunities relating to the rare earths supply chain, in particular neodymium alloy powders, magnet and other technologies geared to accelerating growth in the electric vehicle market.
For more information, please visit www.mkango.ca.
About Talaxis
Founded in 2016, Talaxis is a wholly-owned subsidiary of
For more information, please visit www.talaxis.com.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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, its business and the Project. Generally, forward looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “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. Forward looking statements in this news release include statements with respect to the global market for products using the rare earth metals the Company is exploring for, completion of the feasibility study and of the Transaction contemplated in the agreement with HyProMag, as well as plans for Tyseley and first commercial sales from Tyseley. 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, market demand for the metals and associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility study on the Project, delays in obtaining financing or governmental or stock exchange approvals. 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 assumes 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:
William Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Nominated Adviser and Joint Broker
Alternative Resource Capital
Joint Broker
For more information about Talaxis, please visit www.talaxis.com or contact:
Finsbury
Tel: +44 20 7251 3801
Email: noble@finsbury.com
Citadel-MAGNUS
Tel: +61 2 8234 0100
Email: media@citadelmagnus.com
The
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
2020 GlobeNewswire, Inc., source