Mkango Resources Ltd (AIM: MKA, TSX-V: MKA, OTC: MKNGF) announced that its subsidiary, Maginito, is set to gain full control of HyPromag, a specialist in rare earths recycling, for an initial sum of £2 million, with up to an additional £3 million contingent on performance.
Maginito, which currently owns a 42% stake in HyPromag, has watched the latter innovate a method for producing rare earths via the hydrogen processing of magnet scrap (HPMS). HyPromag is set to begin production in the UK this year, with plans to expand to Germany and the US in 2024.
William Dawes, CEO of Mkango, stated, “Since our initial acquisition of HyProMag in 2020, the company’s progress has been impressive, mitigating risks and further enhancing the patented HPMS rare earth magnet recycling technology.”
Maginito, which is 90% owned by Mkango and 10% by CoTec after their £1.5 million investment in March, will see CoTec take a 10% direct stake in HyPromag Germany, with the US expansion being a 50/50 joint venture.
Julian Treger, CEO of CoTec, remarked, “This deal is a significant advancement for Maginito, as it looks to transition into production in the short to medium term in the UK, Germany, and the US.”
Mkango added, “Rare earth magnets are crucial in clean energy technologies like electric vehicles and wind turbine generators, and they are also a vital component in electronic devices such as mobile phones, hard disk drives, and loudspeakers.”
