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MKANGO RESOURCES
LTD.
550 Burrard
Street
Suite
2900
Vancouver
BC V6C
0A3
Canada
30 April
2024
Mkango releases year-end 2023 financial
statements
LONDON and VANCOUVER, British Columbia, 30
April 2024 (GLOBE NEWSWIRE) - 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
2023.
To view the Financial Statements, please click
here: http://www.rns-pdf.londonstockexchange.com/rns/5630M_1-2024-4-30.pdf
To view the Management's Discussion and
Analysis, please click here http://www.rns-pdf.londonstockexchange.com/rns/5630M_2-2024-4-30.pdf
The reports are also available under the
Company's profile on SEDAR (www.sedar.com)
and on the Company's website (https://mkango.ca/investors/financials/).
FULL YEAR
HIGHLIGHTS:
·
Mkango continued to cement
its leading position and early mover advantage in rare earth magnet
recycling via its 79.4% controlled subsidiary Maginito Limited
("Maginito").
·
During 2023, Maginito
completed the acquisition of 100% of HyProMag Ltd ("HyProMag")
which is targeting commercialising Hydrogen Processing of Magnet
Scrap ("HPMS") technology across multiple jurisdictions, including
UK (in H2 2024), Germany (in 2025) and the United States (in
2026).
·
The HPMS technology was
developed to provide the solution for liberating NdFeB magnets from
end-of-life scrap streams in a cost effective and energy efficient
way with the resulting recycled NdFeB powder fed back into multiple
points of the
rare earth supply
chain including (short-loop) magnet manufacturing, to produce
magnets with a significantly reduced carbon footprint, and
(long-loop) chemical processing to produce rare earth carbonates
and oxides.
·
The acquisition of HyProMag
was supported by a £1.5 million (US$1.9m) investment by CoTec
Holdings Corp. ("CoTec") into Maginito for a 10% interest, and
CoTec's interest in Maginito increased to 20.6% through the
conversion of a £2m (US$2.5m) convertible loan made to
Mkango.
·
The strategic benefits of
HyProMag's HPMS technology and strong potential to contribute to
development of responsible critical mineral supply chains was
validated when it was selected for support by the Minerals Security
Partnership ("MSP"), a collaboration of 14 countries and the
European Union to catalyse public and private investment in
responsible critical minerals supply chains
globally.
·
In September 2023, Maginito
and CoTec agreed to form a 50/50 joint venture company, HyProMag
USA LLC ("HyProMag USA"), to roll-out the HPMS technology into the
United States, with CoTec responsible for funding the feasibility
study and development costs, subject to the results of the
feasibility study.
·
HyProMag achieved a major
milestone in December 2023, with first production runs of
short-loop recycled rare earth magnets completed at the Tyseley
Energy Park rare earths hub in Birmingham, UK - the first UK
production of sintered rare earth magnets on commercial scale
equipment in over 20 years.
·
The Tyseley scale-up and
United States technology roll-out is underpinned by successful
piloting at the University of Birmingham ("UoB") with over 3,000
finished rare earth magnets produced from piloting to
date.
·
Mkango inaugurated a Board
Sustainability Committee in the year and additionally released its
first Environmental Social Governance ("ESG") report - which
highlighted the low carbon credentials of its recycling business,
and the high Corporate Social Responsibility standards of its
Songwe Hill Rare Earths project in Malawi, underpinned by the
Environmental Social Health Impact Assessment ("ESHIA") (to IFC
Performance Standards). The ESHIA was approved in January 2023,
following completion of the Definitive Feasibility Study in
2022.
·
Loss after tax for the year
ended 31 December 2023 of $4,179,951 compared to $5,985,963 for the
year ended 31 December 2022.
SUBSEQUENT
EVENTS:
·
HyProMag USA engaged BBA USA
Inc ("BBA") and PegasusTSI ("Pegasus") to complete the Feasibility
Study for the USA recycling operations with targeted completion in
H2 2024. BBA and Pegasus successfully completed their onboarding
process through visits to key manufacturers in Germany, Poland and
the HyProMag Plant in Tyseley, UK. Commercial production in the USA
is targeted for H1 2026.
·
Mkango completed a fund
raising of £750,000 (US$955,000) in April 2024, including a
£150,000 (US$191,000) investment by Mkango CEO, William Dawes, with
the proceeds to be primarily used for the acquisition of additional
equipment to underpin HyProMag's transition to first commercial
sales of recycled NdFeB at Tyseley Energy Park in Birmingham, UK
targeted for H2 2024, and orders of long lead time equipment in
Germany, unlocking additional grant funding.
·
The Group has completed a
significant cost-cutting exercise in recent months, whilst
streamlining operations to focus on recycling, which has enabled a
35% reduction in the ongoing operating cost requirements for the
business.
·
Discussions are ongoing with
potential strategic investors, project finance providers, grant
funding bodies and other sources to finance recycling scale-up
opportunities and further technology roll-out. In parallel, Mkango
is undertaking a review of strategic options for its advanced stage
Songwe Hill Rare Earth Project in Malawi and the Pulawy Rare Earth
Separation Project in Poland. The DFS for Songwe Hill and
subsequent work identified a number of areas for potential cost
optimisation, and the Company continues to evaluate these and other
cost reduction opportunities in light of the current weak rare
earth market pricing environment.
NEAR TERM
MILESTONES:
·
Full commissioning of pilot
scale long loop (chemical route) recycling process at
Tyseley
Energy Park to
produce rare earth carbonates and oxides targeted for H1
2024.
·
Initial commercial sales of
NdFeB via HyProMag
Ltd's short-loop
recycling process at Tyseley
Energy Park in
the UK targeted for H2 2024.
·
Completion of
HyProMag USA
Feasibility Study targeted in H2 2024. Scope comprises hub and
spoke model, with three HPMS spokes and one magnet manufacturing
hub in Texas.
·
HyProMag GmbH ("HyproMag
Germany") first commercial production in Germany targeted for
2025.
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 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.
Discussions with the Government of Malawi in relation to the Mining
Development Agreement for Songwe Hill are ongoing.
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. Generally, forward looking
statements can be identified by the use of words such as
"targeted", "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, receipt of TSX-V approval
for the Subscription, the availability of (or delays in obtaining)
financing to develop Songwe Hill, and the various recycling plants
in the UK, Germany and the US as well as the separation plant in
Poland, governmental action and other market effects on global
demand and pricing for the metals and associated downstream
products for which Mkango is exploring, researching and developing,
geological, technical and regulatory matters relating to the
development of Songwe Hill, the ability to scale the HPMS and
chemical recycling technologies to commercial scale, competitors
having greater financial capability and effective competing
technologies in the recycling and separation business of Maginito
and Mkango, availability of scrap supplies for recycling
activities, government regulation (including the impact of
environmental and other regulations) on and the economics in
relation to recycling and the development of the various recycling
and separation plants of Mkango and Maginito and future investments
in the United States pursuant to the cooperation agreement between
Maginito and CoTec, the outcome and timing of the completion of the
feasibility studies, cost overruns, complexities in building and
operating the plants, and the positive results of feasibility
studies on the various proposed aspects of Mkango's, Maginito's and
CoTec's activities. 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 disclaims 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 undertakes 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
SP Angel
Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe, Kasia
Brzozowska
UK: +44 20 3470 0470
Alternative
Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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.