Mkango Resources has published its second-quarter 2025 results, reporting a cash balance of US$1.2 million as of June 30, 2025.
Since the beginning of the quarter, 8.34 million investor warrants have been exercised, with 16.6 million in-the-money warrants still outstanding at an exercise price of 7 pence each.
A major development came from HyProMag USA, which received a letter of interest from the U.S. Export-Import Bank for potential financing of up to US$92 million to support its planned facility in Texas.
Mkango also confirmed that its stake in Mkango Rare Earths Limited carries a pre-expense valuation of approximately US$400 million.
On the operational front, the company reported production of 905 kilograms of recycled Neodymium Iron Boron alloy powder to date at its Tyseley Energy Park facility.
To view the Financial Statements, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/3287X_2-2025-8-29.pdf
To view the Management Discussion and Analysis, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/3287X_1-2025-8-29.pdf
HIGHLIGHTS AND RECENT MILESTONES
· Cash position of US$1.2 million as at 30 June 2025. After the exercise of 8,340,000 investor warrants since the start of the quarter, there are 16.6 million in-the-money investor warrants outstanding at 7 pence exercise price per warrant.
· To date, 905 kilograms of recycled Neodymium Iron Boron (“NdFeB”) alloy powder has been produced at Tyseley Energy Park and is being prepared for shipment. The operation is currently progressing towards production of finished sintered NdFeB magnets.
· Development of the scaled-up rare earth magnet recycling and manufacturing plant in Germany is progressing on track for production by the end of the year.
· On 12 June 2025, HyProMag USA, LLC, a Delaware corporation (“HyProMag USA”) received a Make More in America (“MMIA”) domestic finance letter of interest from the U.S. Export-Import (“EXIM”) Bank for its first integrated rare earth recycling and magnet making facility in Dallas-Fort Worth, Texas. In terms of the letter, EXIM may be able to consider potential financing of up to US$92 million of the project’s costs with a repayment tenor of 10 years.
· On 24 July 2025, HyProMag USA and global electronics recycling company, Intelligent Lifecycle Solutions, LLC entered into a feedstock supply and pre-processing site share agreement. ILS will secure and store NdFeB feedstock from hard disk drives and other sources for HyProMag USA at the ILS pre-processing sites in Williston, South Carolina and Reno, Nevada in advance of the commissioning of HyProMag USA’s advanced stage rare earth magnet recycling and manufacturing plant to be located in Dallas-Fort Worth, Texas.
· On 3 July 2025, Lancaster Exploration BVI and Crown PropTech Acquisitions signed a Business Combination Agreement (“BCA”) to create a geographically strategic, pure-play global rare earth platform (expected to be renamed Mkango Rare Earths Limited (“MKAR”)). MKAR’s strategy is to provide a mined, refined and separated supply of rare earth oxides to supply chains across North America, Europe and Asia. The pro forma value of Mkango’s shareholding in MKAR (excluding its existing recycling businesses) pursuant to the BCA is US$400 million prior to transaction expenses and excluding any net proceeds from a PIPE financing and any amounts available from CPTK’s trust account. Transaction proceeds are expected to support MKAR’s strategic growth plan, including the development of the Songwe Hill Project and the Pulawy Project. Completion of the proposed business combination is subject to a number of conditions, including but not limited to, the approval of a Nasdaq listing application, approval by Mkango as shareholder of MKAR, approval by the shareholders of CPTK, approval by the TSX Venture Exchange (“TSX-V”), and the satisfaction or waiver of other closing conditions.
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 BCA with CPTK to list the Songwe Hill and Pulawy rare earths projects on NASDAQ via a SPAC Merger.
For more information, please visit www.mkango.ca
