Mkango Resources’ subsidiary, Maginito, has completed the acquisition of an initial 25% interest in HyProMag, that focuses on rare earth magnet recycling.
Maginito has invested an initial £300,000 for a 25% interest in HyProMag and has an option to invest a further £1 million to increase its interest up to 49%.
Maginito is 75.5% owned by Mkango, which is completing a Feasibility Study for the Songwe Hill rare earths project in Malawi, and 24.5% owned by Talaxis, a wholly owned subsidiary of Noble Group focused on technology metals investment and development.
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Maginito is a related party of Mkango, Talaxis and Noble.
Consistent with Maginito's strategy focused on downstream opportunities relating to the rare earths supply chain.
The transaction will 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.
This will lead to enhanced marketing flexibility and access to downstream markets for rare earth permanent magnets, which are critical materials for electric vehicles, wind turbines, consumer electronics and other technology applications.
William Dawes, CE of Mkango states:
"We are very pleased to become a substantial shareholder of HyProMag via Maginito and look forward to working with the HyProMag team, supporting the future growth of the company and development of this very exciting technology.
“We see rare earth magnet recycling as a major growth industry, complementing the development of new sustainable primary production, such as Mkango's advanced stage Songwe Hill rare earths project in Malawi.
“This investment further enhances Mkango's role in developing a robust and sustainable electric vehicle and clean technology supply chain for global markets."
Daniel Mamadou, Executive Director of Talaxis says:
"Our investment in HyProMag marks an exciting step for Maginito and for Talaxis.
“We are proud to be part of a project that has the potential to revolutionise the magnet recycling sector and support the growing global shift towards renewable energy and electric vehicles.
“This investment further strengthens our position as the supply partner of choice in the technology metals industry and underlines Noble's wider commitment to decarbonisation and sustainability."