CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and Mkango Sources Ltd. (AIM/TSX-V: MKA) (“Mkango”) are happy to announce that HyProMag USA LLC (“HyProMag USA”) will broaden the upcoming detailed design part of its U.S. everlasting magnet recycling and manufacturing venture (the “Mission”) to incorporate three HPMSi vessels.
As well as, and concurrently, HyProMag USA will start conceptual research to judge additional enlargement to triple the capability of the Mission, versus that envisaged within the Feasibility Research, throughout the Mission footprint of Fort Price, Texas (“Texas Hub”), South Carolina and Nevada in addition to built-in USA growth of lengthy loop chemical processing, which is complementary to the HPMS short-loop course of. Lengthy-loop chemical processing is used to course of any materials not appropriate for short-loop recycling in addition to swarf generated from magnet ending. HyProMag USA is concentrating on to provide 10% of U.S. home demand for NdFeB magnets inside 5 years of commissioning.ii
The November 2024 base case Feasibility Research (the “Feasibility Research”)iii, which was based mostly on two HPMS vessels, indicated a NPV7% of US$262iv million based mostly on present market costsv,vi and US$503 million based mostly on forecast costsvii. With the inclusion of the third HPMS vessel for an incremental capital price of circa US$7 million, the Feasibility Research indicated a NPV7% of US$279 million based mostly on present market costs and US$593 million based mostly on forecast costs.
Julian Treger, CoTec CEO commented: “The potential enlargement of HyProMag USA is compelling from a price perspective because the modular design of the manufacturing hubs is predicted to permit for important upfront price financial savings and optimization alternatives might lead to even increased returns than the sturdy economics proven by the Feasibility Research. Moreover, it can additionally play a key function in supporting the US technique of reshoring manufacturing functionality, lowering dependance on overseas magnets and uncommon earths.
The elevated manufacturing capability might additionally enable the pliability to supply a wider vary of merchandise and specialist magnets, additional bettering each monetary returns and the corporate’s potential to turn into a provider of selection.”
Will Dawes, Mkango CEO commented:“The HyProMag USA Feasibility Research highlighted the sturdy economics of the Mission, with important alternatives for additional expansions, coupled with ancillary developments so as to add worth, broaden the product suite and strengthen the aggressive positioning.”
The Feasibility Research included the Texas Hub, and two pre-processing services positioned in South Carolina and Nevada respectively. It’s envisaged that further enlargement capability and downstream growth could possibly be added at both the Texas Hub and / or the 2 pre-processing services, which will probably be evaluated through the idea research, in addition to the potential to course of further major feed if required to initially assist the enlargement. The modular nature of the manufacturing design ought to enable duplication with restricted design changes and will profit from the development and ramp-up learnings of the Texas Hub, and commissioning of the UK and Germany operations. With the elevated manufacturing capability, the Mission will generate further NdFeB co-products appropriate for lengthy loop chemical processing. The chance to develop an built-in lengthy loop chemical processing plant can even be evaluated through the idea research.
Each long-loop and short-loop recycling applied sciences are underpinned by the HPMS expertise, which liberates magnets from end-of-life scrap streams in a price efficient and power environment friendly method to produce a recycled NdFeB alloy powder, which is manufactured right into a magnet (by way of the quick loop course of) or right into a uncommon earth carbonate or oxide (by way of the lengthy loop chemical course of). In March 2025, HyProMag USA introduced the outcomes of an unbiased ISO-Compliant product carbon footprint examine which confirmed an exceptionally low CO2 footprint of two.35 kg CO2 eq. per kg of NdFeB lower sintered block product.viii
The Texas Hub’s annual manufacturing with a 3rd HPMS vessel will probably be 750 metric tons every year of recycled sintered NdFeB magnets and 807 metric tons every year of related NdFeB co-products (complete payable capability – 1,557 metric tons NdFeB inside 5 years of commissioning) over a 40 12 months working life. It’s anticipated that the third reactor will present the Texas Hub with important optionality to provide the U.S. market with further NdFeB alloy powder. The detailed design will additional incorporate debottlenecking and optimization of the three current magnet traces on the proposed Texas Plant.
Possession
HyProMag USA is owned 50:50 by CoTec and HyProMag Restricted. HyProMag Restricted is 100 per cent owned by Maginito Restricted (“Maginito”), which is owned on a 79.4/20.6 per cent foundation by Mkango and CoTec.
About HyProMag
HyProMag is commercializing HPMS recycling expertise within the UK, Germany and United States. HyProMag can be evaluating different jurisdictions, and in mid-2024 launched a collaboration with Envipro on uncommon earth magnet recycling in Japan. HPMS expertise was developed on the Magnetic Supplies Group (MMG) at College of Birmingham, underpinned by roughly US$100 million of analysis and growth funding, and has main aggressive benefits versus different uncommon earth magnet recycling applied sciences, that are largely targeted on chemical processes however don’t resolve the challenges of liberating magnets from end-of-life scrap streams – HPMS supplies this answer.
About CoTec Holdings Corp.
CoTec is a publicly traded funding issuer listed on the Toronto Enterprise Inventory Change (“TSX– V”) and the OTCQB and trades beneath the image CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking useful resource extraction firm dedicated to revolutionizing the worldwide metals and minerals trade by means of progressive, environmentally sustainable applied sciences and strategic asset acquisitions. With a mission to drive the sector towards a low-carbon future, CoTec employs a twin method: investing in disruptive mineral extraction applied sciences that improve effectivity and sustainability whereas making use of these applied sciences to undervalued mining property to unlock their full potential. By specializing in recycling, waste mining, and scalable options, the Firm accelerates the manufacturing of important minerals, shortens growth timelines, and reduces environmental impression. CoTec’s strategic mannequin delivers low capital necessities, speedy income technology, and excessive limitations to entry, positioning it as a number one mid-tier disruptor within the commodities sector.
For extra data, please go to www.cotec.ca.
About Mkango Sources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango’s company technique is to turn into a market chief within the manufacturing of recycled uncommon earth magnets, alloys and oxides, by means of its curiosity in Maginito Restricted (“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 provide accelerating demand from electrical autos, wind generators and different clear power applied sciences.
Maginito holds a 100 per cent curiosity in HyProMag and a 90 per cent direct and oblique curiosity (assuming conversion of Maginito’s convertible mortgage) in HyProMag GmbH, targeted on quick loop uncommon earth magnet recycling within the UK and Germany, respectively, and a 100 per cent curiosity in Mkango Uncommon Earths UK Ltd (“Mkango UK”), targeted on lengthy loop uncommon earth magnet recycling within the UK by way of a chemical route.
Maginito and CoTec are additionally rolling out HPMS recycling expertise into the USA by way of the 50/50 owned HyProMag USA LLC three way partnership firm.
Mkango additionally owns the superior stage Songwe Hill uncommon earths venture and an intensive uncommon earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy uncommon earths separation venture in Poland. Mkango has signed a letter of Intent with Crown PropTech Acquisitions to record the Songwe Hill and Pulawy uncommon earths initiatives on NASDAQ by way of a SPAC Merger.
For extra data, please go to www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The data contained inside this announcement is deemed by the Firm to represent inside data as stipulated beneath the Market Abuse Rules (EU) No. 596/2014 (‘MAR’) which has been included into UK legislation by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement by way of Regulatory Data Service, this inside data is now thought-about to be within the public area.
Cautionary Notice Concerning Ahead-Trying Statements
This information launch comprises forward-looking statements (throughout the that means of that time period beneath relevant securities legal guidelines) with respect to Mkango and CoTec. Typically, ahead wanting statements will be recognized by means of phrases reminiscent of “plans”, “expects” or “is predicted to”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such phrases and phrases, or statements that sure actions, occasions or outcomes “can”, “could”, “might”, “would”, “ought to”, “may” or “will”, happen or be achieved, or the unfavorable connotations thereof. Readers are cautioned to not place undue reliance on forward-looking statements, as there will be no assurance that the plans, intentions or expectations upon which they’re based mostly will happen. By their nature, forward-looking statements contain quite a few assumptions, identified and unknown dangers and uncertainties, each basic and particular, that contribute to the likelihood that the predictions, forecasts, projections and different forward-looking statements won’t happen, which can trigger precise efficiency and leads to future intervals to vary materially from any estimates or projections of future efficiency or outcomes expressed or implied by such forward-looking statements. Such elements and dangers embrace, with out limiting the foregoing, the profitable conclusion of the MDA, the supply of (or delays in acquiring) financing to develop Songwe Hill, the Recycling Crops being developed by Maginito within the UK, Germany and the US (the “Maginito Recycling Crops”), the outcomes of the Feasibility Research and the Pulawy Separation Plant, governmental motion and different market results on world demand and pricing for the metals and related downstream merchandise for which Mkango is exploring, researching and creating, geological, technical and regulatory issues referring to the event of Songwe Hill, the power to scale the HPMS and chemical recycling applied sciences to industrial scale, opponents having larger monetary functionality and efficient competing applied sciences within the recycling and separation enterprise of Maginito and Mkango, availability of scrap provides for Maginito’s recycling actions, authorities regulation (together with the impression of environmental and different rules) on and the economics in relation to recycling and the event of the Maginito Recycling Crops, and the Pulawy Separation Plant and future investments in the USA pursuant to the proposed cooperation settlement between Maginito and CoTec, the result and timing of the completion of the feasibility research, price overruns, complexities in constructing and working the crops, and the optimistic outcomes of feasibility research on the varied proposed features of Mkango’s, Maginito’s and CoTec’s actions. The forward-looking statements contained on this information launch are made as of the date of this information launch. Besides as required by legislation, the Firm and CoTec disclaim any intention and assume no obligation to replace or revise any forward-looking statements, whether or not due to new data, future occasions or in any other case, besides as required by relevant legislation. Moreover, the Firm and CoTec undertake no obligation to touch upon the expectations of, or statements made by, third events in respect of the issues mentioned above.
For additional data on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Monetary Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
For additional data on Mkango, please contact:
Mkango Sources Restricted
William Dawes
Chief Govt Officer
will@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Alexander Lemon
President
alex@mkango.ca
SP Angel Company Finance LLP
Nominated Adviser and Joint Dealer
Jeff Keating, Jen Clarke, Devik Mehta
UK: +44 20 3470 0470
Different Useful resource Capital
Joint Dealer
Alex Wooden, Keith Dowsing
UK: +44 20 7186 9004/5
The TSX Enterprise Change has neither accredited nor disapproved the contents of this press launch. Neither the TSX Enterprise Change nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Change) accepts duty for the adequacy or accuracy of this launch. This press launch doesn’t represent a suggestion to promote or a solicitation of a suggestion to purchase any fairness or different securities of the Firm in the USA. The securities of the Firm won’t be registered beneath the USA Securities Act of 1933, as amended (the “U.S. Securities Act”) and might not be provided or offered inside the USA to, or for the account or good thing about, U.S. individuals besides in sure transactions exempt from the registration necessities of the U.S. Securities Act.
