Mkango Resources Ltd (AIM / TSX-V:MKA) (the “Company” or “Mkango”), is pleased to announce that it has released the Financial Statements and Management’s Discussion and Analysis for the period ending 31 December 2024. The reports are available under the Company’s profile on SEDARplus (www.sedarplus.com) and on the Company’s website (https://mkango.ca/investors/financials/).
To view the Financial Statements, please click here: http://www.rns-pdf.londonstockexchange.com/rns/9377G_1-2025-4-30.pd
To view the Management’s Discussion and Analysis, please click here: http://www.rns-pdf.londonstockexchange.com/rns/9377G_2-2025-4-30.pdf
2024 HIGHLIGHTS AND RECENT MILESTONES
· Cash position of US$1.16 million as at 31 December 2024. Subsequent to the year end, the Company raised gross proceeds of £2.34 million (approximately $2.93 million) via a private placement through the issuance of 29,187,500 common shares of the Company at a price per share of 8 pence (approximately $0.10).
· There are also 25 million in-the-money investor warrants outstanding at 7 pence exercise price per warrant.
Upstream Rare Earths Projects
· In July 2024, the Company and the Government of Malawi signed the Mine Development Agreement (“MDA”) for the Songwe Hill Rare Earths Project. This follows the completion of the Definitive Feasibility Study (“DFS”) in July 2022 and approval of the Environmental, Social, Health Impact Assessment (“ESHIA”) in January 2023.
· Mkango has entered into a non-binding Letter of Intent (“LOI”) with Crown PropTech Acquisitions for a proposed business combination that would result in a NASDAQ listing of Lancaster BVI and Mkango Polska which hold the Songwe Hill Rare Earths Project and the Pulawy Rare Earths Separation Plant Project respectively. The business combination agreement is currently being finalised. Following completion of the transaction, Mkango will retain a majority interest in the newly listed mining-focused entity.
· The Pulawy Project has been designated as a strategic project by the European Commission under the Critical Raw Materials Act (“CRMA”).
Rare Earth Magnet Recycling and Manufacturing Projects
HyProMag Ltd (UK)
· Development of scaled-up rare earth magnet recycling and manufacturing plant at Tyseley Energy Park, Birmingham progressing in parallel with piloting at University of Birmingham.
· Magnet presses commissioned and powder processing plant constructed at Tyseley, with infrastructure development underway.
· The factory acceptance test for the HPMS vessel took place in February and the vessel has arrived in the UK from Germany.
· Completion of infrastructure developments and first production from Tyseley targeted by the end of June 2025, with ongoing pilot production enabling delivery of products to customers in advance of this.
HyProMag GmbH (Germany)
· Development of the scaled-up rare earth magnet recycling and manufacturing plant in Germany is progressing on track for Q4 2025 production.
· A site has been selected near Pforzheim, Germany and lease signed, with planning for the infrastructure development progressing well.
· Equipment ordered to date includes HPMS vessel, magnet presses, jet mill, sintering furnaces and other items.
HyProMag USA
· Positive feasibility study results for rare earth magnet recycling and manufacturing project in Texas, USA announced in November 2024.
· US$503 million Net Present Value (“NPV”) and 31% Real Internal Rate of Return (“IRR”) at forecast prices.
· US$262 million NPV and 23% Real IRR at current prices.
· First revenue targeted in H1 2027 with a Notice to Proceed expected in H2 2025 following completion of detailed engineering funded by JV partner CoTec.
· Post year end, HyProMag USA appointed lead engineers PegasusTSI and BBA to perform engineering, procurement and construction management (“EPCM”) services for HyProMag USA.
About Mkango Resources Ltd.
Mkango is listed on 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 Limited (“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 HyProMag’s 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 and 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
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
Canada: +1 403 444 5979
www.mkango.com
@MkangoResources
