Maginito is 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
Maginito to Acquire Pioneering Rare Earth Magnet Recycler HyProMag. (Credit: nettetal10 from Pixabay)
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 issue of 9,742,031 Mkango common shares equivalent to £1m (C$1.69m) at a price equal to 10.2648 pence based on the volume weighted average price of a Mkango common share on the AIM Market of the London Stock Exchange (“AIM”) for the 10 business days ended on the date prior to the date of the share purchase agreement. In addition, up to a further £3m (C$2.54m) may be payable to the Vendors in four tranches, either in cash or in Mkango common shares (at Mkango’s option), conditional upon the achievement by HyProMag of certain production milestones in the period to 30 June 2026. The shares issued on completion will have a one-year lock up and the shares issued on milestones will have a six-month lock up.
William Dawes, CEO of Mkango, commented: “Since acquiring our initial interest in HyProMag in 2020, we have seen the company go 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.”
David Kennedy, Director of HyProMag, commented: “Building on the legacy of innovation in rare earth permanent magnets and hydrogen technologies pioneered by the late Prof. Rex Harris at the University of Birmingham, we founded HyProMag in 2018 with Rex as a founding shareholder. Our aim was to accelerate the commercialisation of the HPMS process, and our collaboration with Mkango has supported the company’s growth and enabled the participation in major collaborative projects on rare earth magnet recycling. We look forward to the next phase of growth at Tyseley Energy Park, scaling up the technology and showcasing rejuvenation of Birmingham’s industrial heritage, in parallel with the international roll-out.”
Julian Treger, CEO of CoTec, commented: “This transaction is a major step forward for Maginito as it seeks to move into production over the short to medium term in the United Kingdom, Germany and the United States. We look forward to supporting and working with Mkango, Maginito and the HyProMag team to roll out this innovative and highly energy efficient recycling technology, both as a Maginito shareholder and as a partner in the United States.”
Rare earth magnets play a key role in clean energy technologies including electric vehicles and wind turbine generators, and they are also a key component in electronic devices including mobile phones, hard disk drives and loudspeakers. The development of domestic sources of recycled rare earths in UK, Germany, United States and other jurisdictions via HPMS is a significant opportunity to fast-track the development of sustainable and competitive recycled rare earth magnet production.
Source: Company Press Release