Mkango completes initial 25% acquisition of UK rare earth processing firm

By Wahard Betha

Canadian listed Mkango Resources says it has through its subsidiary Maginito Limited completed the procurement of an initial 25% shareholding interest in HyProMag Limited, a UK based company that focuses on rare earth magnet recycling.

Through its other subsidiary Lancaster Exploration, Mkango has reached an advanced stage in its feasibility studies for rare earth mining at Songwe Hill in Phalombe.

In September last year, Mkango through Maginito announced an investment of an initial £300,000 for a 25% interest in HyProMag, with a possibility of extension of up to £1 million to increase its interest up to 49%.

Maginito is 75.5% owned by Mkango and 24.5% owned by Talaxis Limited (“Talaxis”), a wholly-owned subsidiary of Noble Group Holdings Limited (“Noble”), which is focused on technology metals investment and development.

CEO for Mkango William Dawes says: “We are very pleased to become a substantial shareholder of HyProMag via Maginito and look forward to working with the HyProMag team, supporting the future growth of the company and development of this very exciting technology.”

“We see rare earth magnet recycling as a major growth industry, complementing the development of new sustainable primary producton, such as Mkango’s advanced stage Songwe Hill rare earths project in Malawi.”

He explains that the transaction will generate potential synergies, such as first right to supply primary 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.

The transaction will also spearhead the company’s role in developing a robust and sustainable electric vehicle and clean technology supply chain for global markets.

Dawes describes REE permanent magnets as critical materials for electric vehicles, wind turbines, consumer electronics and other technology applications.

Executive Director for Talaxis Daniels Mamadou says the initial procurement of the shareholding is a milestone for both companies as investment partners.  

“Our investment in HyProMag marks an exciting step for Maginito and for Talaxis. We are proud to be part of a project that has the potential to revolutionize the magnet recycling sector and support the growing global shift towards renewable energy and electric vehicles,” Mamadou says.

He says the investment will further strengthen the current position of the company as a supply partner of choice in the technology metals industry and underlines wider commitment to decarbonization and sustainability.

HyProMag is within the School of Metallurgy at the University of Birmingham in UK and has been active in the field of rare earth alloys and processing of permanent magnets using hydrogen for over 40 years.

Hydrogen decrepitating method, which is used to reduce REE alloys to a powder in a process called Hydrogen Processing of Magnet Scrap, is now ubiquitously employed in worldwide magnet processing.

Besides the Phalombe license, Mkango holds other three exclusive prospecting licenses in Malawi namely Chimimbe Hill, Thambani and Mchinji.

The Songwe Hill rare earths deposit 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 November 2015 and a Feasibility Study is currently underway, the initial phases of which included a 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019.

23 thoughts on “Mkango completes initial 25% acquisition of UK rare earth processing firm

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