Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”)
and CoTec Holdings Corp. (TSX-V: CTH) (“CoTec”) are pleased to
announce that, on May 29, 2022, they signed a non-binding term
sheet in relation to a potential £2 million convertible note
investment in Mkango bearing 5% interest, a potential £1.5 million
equity investment in Maginito, and a co-operation agreement
regarding future investments in rare earth processing technology
opportunities in the United States.
William Dawes, Chief Executive of Mkango
stated: “We are very pleased to take this step towards
collaborating with CoTec in the rare earths sector. The proposed
investments would increase Mkango’s financial flexibility, creating
a strong platform to grow Maginito and for future expansion into
the U.S. market, whilst the integrated development of Songwe and
the Pulawy separation plant continues in parallel.”
Julian Treger, Chief Executive Officer
of CoTec stated: “Our collaboration with, and investment
in, Mkango and Maginito are consistent with CoTec’s focus on
investing in innovative, green and scalable technologies in the
mineral extraction industry.”
Maginito is focused on developing green
technology opportunities in the rare earths supply chain,
encompassing neodymium (NdFeB) magnet recycling as well as
innovative rare earth alloy, magnet, and separation technologies.
Maginito holds a 42% interest in U.K. rare earth (NdFeB) magnet
recycler, HyProMag (www.hypromag.com) with an option to increase
its interest to 49%. Hypromag has licensed the patented technology
called HPMS (Hydrogen Processing of Magnet Scrap) developed in the
Magnetic Materials Group (MMG) at the University of Birmingham.
HyProMag’s strategy is to establish short loop
recycling facilities for NdFeB magnets at Tyseley Energy Park in
Birmingham, U.K. (the “Tyseley Recycling Facilities”) and other
locations to provide a sustainable solution for the supply of NdFeB
magnets and alloy powders for a wide range of markets including,
for example, automotive and electronics. In November 2021, HyProMag
established an 80%-owned subsidiary in Germany, HyProMag GmbH, to
rollout commercialisation of HPMS technology into Germany and
Europe.
Mkango UK is establishing a pilot plant at
Tyseley Energy Park (the “Mkango UK Pilot Plant”) to chemically
process recycled HPMS NdFeB powder and magnet swarf (i.e. the
powder produced from grinding and finishing magnets) from a range
of scrap sources including electronic waste, electric motors and
wind turbines, complementing the short loop magnet recycling routes
being developed in parallel by HyProMag.
Market Abuse Regulation (MAR)
Disclosure
The information contained within this
announcement is deemed by the Company to
constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ('MAR') which
has been incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain.
About CoTec Holdings Corp.
CoTec is an ESG-focused company investing in
innovative technologies that have the potential to fundamentally
change the way metals and minerals can be extracted and processed.
The Company is committed to supporting the transition to a lower
carbon future for the extraction industry, a sector on the cusp of
a green revolution as it embraces technology and innovation.
CoTec is a publicly traded mining issuer listed
on the Toronto Venture Stock Exchange and trades under the symbol
CTH. For more information, please visit www.cotec.ca.
About Mkango
Resources Limited
Mkango's corporate strategy is to develop new
sustainable primary and secondary sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare
earths sector.
Mkango is developing Songwe Hill in Malawi with
a Feasibility Study nearing completion. Malawi is known as "The
Warm Heart of Africa", a stable democracy with existing road, rail
and power infrastructure, and new infrastructure developments
underway.
In parallel, Mkango and Grupa Azoty PULAWY,
Poland's leading chemical company and the second
largest manufacturer of nitrogen and compound fertilizers in
the European Union, have agreed to work together towards
development of a rare earth Separation Plant at Pulawy in Poland
(the “Pulawy Separation Plant”). The Pulawy Separation Plant will
process the purified mixed rare earth carbonate produced at Songwe
Hill.
Through its ownership of Maginito
(www.maginito.com), Mkango is also developing green technology
opportunities in the rare earths supply chain, encompassing
neodymium (NdFeB) magnet recycling as well as innovative rare earth
alloy, magnet, and separation technologies. Maginito holds a 42%
interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com) with an option to increase its interest to
49%.
Mkango also has an extensive exploration
portfolio in Malawi, including the Mchinji rutile exploration
project, the Thambani uranium-tantalum-niobium-zircon project and
Chimimbe nickel-cobalt project.
For more information, please
visit www.mkango.ca
Cautionary Note Regarding
Forward-Looking Statements
This news release contains forward-looking
statements (within the meaning of that term under applicable
securities laws) with respect to Mkango, its business, HyProMag,
Mkango UK, the Pulawy Separation Plant, the Tyseley Recycling
Facilities, the Mkango UK Pilot Plant and Songwe and the
Transactions as well as with respect to CoTec. Generally, forward
looking statements can be identified by the use of words such as
“plans”, “expects” or “is expected to”, “scheduled”, “estimates”,
“intends”, “anticipates”, “believes”, or variations of such words
and phrases, or statements that certain actions, events or results
“can”, “may”, “could”, “would”, “should”, “might” or “will”, occur
or be achieved, or the negative connotations thereof. Readers are
cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will
not occur, which may cause actual performance and results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, without
limiting the foregoing, completion of the Transactions,
governmental action relating to COVID-19, COVID-19 and other market
effects on global demand and pricing for the metals and associated
downstream products for which Mkango is exploring, researching and
developing, factors relating the development of the Mkango UK Pilot
Plant, the Pulawy Separation Plant, including the outcome and
timing of the completion of the feasibility studies, cost overruns,
complexities in building and operating the Separation Plant,
changes in economics and government regulation, the positive
results of a feasibility study on the Pulawy Separation Plant and
Songwe and delays in obtaining financing or governmental approvals
for, and the impact of environmental and other regulations relating
to, Songwe, the Mkango UK Pilot Plant and the Pulawy Separation
Plant. The forward-looking statements contained in this news
release are made as of the date of this news release. Except as
required by law, the Company and CoTec disclaim any intention and
assume no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law. Additionally,
the Company and CoTec undertake no obligation to comment on the
expectations of, or statements made by, third parties in respect of
the matters discussed above.
For
further information on Mkango, please contact: |
Mkango
Resources Limited |
|
|
|
William Dawes |
|
Alexander Lemon |
Chief Executive Officer |
|
President |
will@mkango.ca |
|
alex@mkango.ca |
Canada: +1 403 444 5979 |
|
|
www.mkango.ca |
|
|
@MkangoResources |
|
|
BlytheRay |
Financial Public
Relations |
Tim Blythe |
UK: +44 207 138 3204 |
SP Angel Corporate Finance LLP |
Nominated Adviser and Joint
Broker |
Jeff Keating, Caroline
Rowe |
UK: +44 20 3470 0470 |
Alternative Resource Capital |
Joint Broker |
Alex Wood, Keith Dowsing |
UK: +44 20 7186 9004/5 |
For further information on CoTec, please
contract: |
|
CoTec Holdings
Corp. |
Braam Jonker |
Chief Financial Officer |
braam.jonker@cotec.ca |
Canada: +1 604 992-5600 |
The TSX Venture Exchange has neither
approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any equity or other
securities of the Company in the United States. The securities of
the Company will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") and
may not be offered or sold within the United States to, or for the
account or benefit of, U.S. persons except in certain transactions
exempt from the registration requirements of the U.S. Securities
Act.
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