Land Lease Agreement Signed To Construct a Rare Earths Separation Plant In Poland with Grupa Azoty Pulawy
London / Vancouver: February 17, 2025 – Mkango Resources Ltd (AIM/TSX-V: MKA) (“Mkango”), is pleased to announce that Mkango’s wholly owned subsidiary, Mkango Polska Sp. Z.o.o, has signed a revised exclusive land lease agreement (“the Agreement”) with Grupa Azoty Pulawy for the construction of a strategic rare earths separation plant in Poland. The Agreement constitutes a continuation of cooperation that the parties first started in 2021.
The Agreement is for a large 8 hectare site adjacent to Grupa Azoty Pulawy’s fertilizer and chemicals complex at Pulawy in Poland (the “Site”). The site provides excellent infrastructure, access to reagents and utilities and covers a substantial area which enables future expansion potential.
Located within a Polish Special Economic Zone, the Site also provides excellent access to European and international markets. Production from the plant will strengthen Europe’s security of supply for rare earths, used in plug-in electric vehicles, hybrid electric vehicles, wind turbines and other green technology and strategic applications. It also aligns with European initiatives to create more robust, diversified supply chains through the latest European Union Critical Raw Materials Regulations.
Alexander Lemon, President of Mkango stated: “We are delighted to have signed a revised exclusive land lease agreement adjacent to the Grupa Azoty Pulawy which will enable future separation plant expansion. We very much value working closely with Grupa Azoty and look forward to completing a definitive feasibility study on the rare earth separation plant and starting construction.”
Hubert Kamola, Vice-President of the Management Board of Grupa Azoty S.A stated: “The project is very innovative and provides an opportunity to create new jobs and transfer new technologies and creates the potential to develop a critical materials supply chain for Europe and North America. Developing partnerships is a key driver for our Azoty Business Program. There are many synergies that the site provides such as land, utilities, reagents and chemical engineering expertise, which is why we are supporting this exciting business development”
About Mkango Resources Ltd
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 Holdings Corp. (“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 the HyProMag recycling business and a 90 per cent direct and indirect fully-diluted interest in HyProMag GmbH (assuming conversion of Maginito’s convertible loan to 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, focused on long loop rare earth magnet recycling in the UK via a chemical route. Maginito and CoTec are also rolling out HyProMag recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture. HyProMag is also evaluating other jurisdictions, and recently launched a collaboration with Envipro Technology Company Limited on rare earth magnet recycling in Japan.
Mkango owns the advanced stage Songwe Hill rare earths project, an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland.
Songwe Hill is one of the few rare earths projects to have progressed to the Definitive Feasibility Stage, with an expected life of mine of 18 years, producing a 55% mixed rare earth carbonate, yielding 1,953 tons per annum of NdPr and 56 tons per annum of DyTb.
Mkango’s proposed Pulawy separation facility site, located in a Special Economic Zone in Poland, stands adjacent to the EU’s second largest manufacturer of nitrogen fertilisers, and features established infrastructure, access to reagents and utilities on site.
Mkango has signed a letter of Intent with Crown PropTech Acquisitions to list Mkango’s Songwe Hill and Pulawy Rare Earths Projects on NASDAQ via a SPAC Merger.
For more information, please visit www.mkango.ca
About Grupa Azoty Pulawy
Grupa Azoty Pulawy a subsidiary of Grupa Azoty Capital Group is the leading supplier of nitrogen fertilisers for Polish agriculture and is the second largest producer of nitrogen multi-component fertilizers in European Union and a major producer of melamine, polyamide, OXO alcohols, plasticizers and titanium white.
For further information on Mkango, please contact:
Mkango Resources Limited, Lancaster Exploration Limited and Mkango Polska Sp. Z.o.o
Alexander Lemon William Dawes
President Chief Executive Officer
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
