Aim-listed and TSX-V-listed Mkango Resources’ 75%-owned subsidiary Maginito has acquired an initial 25% interest in HyProMag.
HyProMag is a private UK-based company that is focused on rare earth magnet recycling. The company has a patented process for extracting and demagnetising neodymium iron boron alloy powders from magnets embedded in scrap equipment.
Maginito invested an initial £300 000 for the 25% interest and has the option to invest a further £1-million to increase its shareholding to 49%.
The initial funds will be used for HyProMag’s Rare-Earth Recyling for E-Machines project, a pilot rare earth magnet recycling facility at Tyseley energy park, in Birmingham. The facility will produce sintered rare earth magnets for use in new electric motor designs for automotive use.
The transaction aligns with Maginito’s strategy to unlock downstream opportunities related to the rare earths supply chain.
It is also expected to generate potential synergies, such as first right to supply primary production, if required, for blending with recycled production from HyProMag, as well as product offtake and marketing rights.
Rare earth permanent magnets are used in electric vehicles, wind turbines and consumer electronics.
Meanwhile, Mkango is completing a feasibility study on the Songwe Hill rare earths project, in Malawi.
Mkango is 24.5%-owned by Talaxis, which is, in turn, wholly-owned by Noble Group Goldings.