HYPROMAG USA TO COMMISSION SCOPING STUDY TO TRIPLE CAPACITY IN THE UNITED STATES EXPANDING INTO NEVADA AND SOUTH CAROLINA
London / Vancouver: 4 September 2025 – Mkango Resources Ltd (AIM / TSX-V:MKA) (the “Company” or “Mkango”) is pleased to announce that US-based PegasusTSI Inc. (“PegasusTSI”) and Canada-based BBA USA Inc. (“BBA”) have been engaged to complete the HyProMag USA, LLC (“HyProMag USA”) expansion concept study (“Concept Study” or “Project”) for new Nevada and South Carolina rare earth permanent magnet recycling plants in collaboration with global electronics recycling company, Intelligent Lifecycle Solutions, LLC (“ILS”). The expansions envisaged by the Concept Study would be completed concurrently with the phased expansion of the first HyProMag USA facility located in Fort Worth, Texas[i] (the “Texas Hub”) to optimise the “hub and spoke” configuration for rare earth magnet production and production of Hydrogen Processing of Magnet Scrap (“HPMS”) recycled NdFeB alloy powder.
The Concept Study will define the conceptual design and investment requirements for new HyProMag facilities in Williston, South Carolina, and Reno, Nevada. It will evaluate site suitability, logistics, scope of developments, infrastructure and environmental assessment, while confirming additional HPMS processing capacity to support up to four additional magnet production lines. The Project will provide an AACE[ii] Class V CAPEX estimate and will incorporate the current advanced design of the HyProMag USA facility located in Fort Worth, Texas.
Julian Treger, CEO of CoTec, commented: “We are very excited to begin formally expanding and optimising the footprint of HyProMag USA to Nevada and South Carolina collaborating with our partner, ILS. HyProMag USA’s NPV for the Texas hub is circa $600 million based on recent expansion plans, and the economics of expanding the hubs are linear which provides a potential 3x increase in Company value with additional hubs.
Furthermore, given the recent strong increase in the price of rare earths and their associated magnets, the valuation of the Company continues to strengthen as detailed engineering, supply of feedstock and offtake discussions continue at pace. With the recent significant steps by the U.S. Government to support domestic supply and reshoring of rare earth magnet production, HyProMag USA is well positioned to support U.S. demand growth with commercial operations targeted in H1 2027. HyProMag USA continues to develop strategic partnership discussions with all stakeholders to accelerate financing, commissioning and product verification timelines.”
Will Dawes, CEO of Mkango, commented: “Momentum continues to gather for HyProMag USA with detailed engineering progressing well, and we are very excited to be pushing forward with the Concept Study for the expansion Project. This Project can unlock significant additional value for the group and help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States. We look forward to continuing to work with the Project team as we move to the next stage of development.
HyProMag USA Feasibility Study
The Feasibility Study includes the Texas Hub, and two pre-processing facilities located in South Carolina and Nevada respectively[iii]. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vesselsi and that it was initiating concept studies for further expansion and complementary “Long-Loop” recycling[iv]. The Texas 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 revitalizing the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.
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.[v]
In August 2025, HyProMag USA announced ILS had formally commenced its stockpiling of feedstock[vi] initiative pursuant to the recently announced feedstock supply and pre-processing site share agreement between HyProMag USA and ILS.[vii]
About HyProMag USA
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango Resources Ltd. (AIM/TSX-V: MKA) and CoTec.
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, 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 (“Songwe”) and the Pulawy rare earths separation project in Poland (“Pulawy”). Both the Songwe and Pulawy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Mkango has signed a Business Combination Agreement 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
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
Canada: +1 403 444 5979
