Success sees Mkango extend R&D project with Metalysis

Mkango Resources announced on Friday that it has commenced Phase II of its research and development programme with Metalysis, and has raised £0.5m at 3.5p per share in a placing.

The AIM-traded company said the successful Phase I production of a neodymium-iron-boron alloy powder had been achieved using Metalysis' solid-state technology.

It said NdFeB alloys are used to make permanent magnets, critical components of most electric vehicles, direct drive wind turbines and “many other” high-growth applications.

The Mkango board said the Phase I results supported the commencement of a Phase II R&D programme with Metalysis, and a binding joint venture principles and exclusivity agreement for advanced alloys using neodymium or praseodymium with other elements for magnet manufacturing had been signed as a result.

Neodymium and other rare earths used in permanent magnets were also “key components” of Mkango's advanced stage rare earths project in Malawi, the board reported, so the collaboration with Metalysis “significantly” enhanced the strategic value of that project.

It said neodymium oxide prices had also approximately doubled since the start of the year, and the supply - demand outlook for rare earths used in permanent magnets remained “very positive”.

“Mkango is now uniquely positioned in the rare earths sector and these very promising developments provide a strong platform for moving into Phase II R&D,” said Mkango chief executive Will Dawes.

“Our collaboration with Metalysis enhances our ability to meet supply chain requirements for accelerating growth in the electric vehicle market, amongst other applications.”

“This programme is underpinned by our advanced stage Songwe Hill rare earths project in Malawi, where Mkango is spearheading the sustainable development of rare earths for the emerging, global low carbon economy.”

Dion Vaughan, chief executive of Metalysis, said his company was “very pleased” to commence Phase II of the R&D programme with Mkango.

“Producing a neodymium-iron-boron alloy illustrates the wide range of advanced alloys Metalysis' process can produce.

“We look forward to collaborating with Mkango over the coming months on this exciting project.”