Mkango stake in HyProMag rises to 42pc

Mkango said on Wednesday that it was increasing its interest in HyProMag to 41.6% from 25%, following the exercise of HyProMag’s its right to convert the £0.2m convertible loan, which formed part of the £0.5m financing package completed in January 2020, into shares.

The AIM-traded firm said cash retained by HyProMag would be used to support the scale-up of the patented ‘Hydrogen Processing of Magnet Scrap’ (HPMS) technology at University of Birmingham and Tyseley Energy Park.

It said HyProMag was set to become the UK's first producer of recycled, sintered NdFeB rare earth magnets and materials, as used in electric vehicles, wind turbines and consumer electronics.

Such magnets benefitted from an estimated 88% lower energy usage, and close-to-zero human toxicity compared to primary mining to separation to metal alloy to magnet production, the board said.

Mkango said it was evaluating further complementary opportunities to expand its position in rare earth recycling, benefiting from its increased strategic interest in HyProMag with associated offtake and supply rights, and HyProMag's early-mover competitive advantage in a sector with high technological barriers to entry.

“We are very pleased to increase our interest in HyProMag, which has the technology, team and network of partnerships to unlock the supply chain for rare earth magnet recycling,” said chief executive officer William Dawes.

“We look forward to supporting its future growth as it scales up to commercial production and developing new opportunities for collaboration in the recycling sector.

“Recycling is a key component of Mkango's ‘mine, refine, recycle’ strategy and will become an increasingly important part of the rare earth supply chain in the UK, Europe and elsewhere.”

At 1143 GMT, shares in Mkango Resources were down 0.43% at 30.12p.