Aim- and TSX-V-listed Mkango Resources’ interest in UK-based magnetic recycling company HyProMag has increased to 41.6% from 25%.
This followed HyProMag opting to exercise its right to convert into shares a £200 000 loan, which formed part of a £500 000 financing package agreed between the companies in January 2020.
HyProMag will use the cash to scale up its patented hydrogen processing of magnet scrap technology.
This sets the company in good stead of becoming the UK’s first producer of recycled, sintered neodymium magnet rare earth magnets and materials, which are used in electric vehicles, wind turbines and consumer electronics.
The recycling of this material offers lower energy use and almost zero human toxicity, compared with primary mining to separation to metal alloy to magnet production.
Meanwhile, Mkango continues to evaluate further opportunities to expand its position in rare earths recycling.
Mkango’s interest in HyProMag is held through a subsidiary called Maginito Limited and it has the option to further increase its interest in HyProMag to 49%.
Maginito has the first right to supply primary production, if required, for blending with recycled production from HyProMag, as well as product offtake and marketing rights.