Mkango Subsidiary Maginito Completes the Acquisition of a 25% Interest in Hypromag
London / Vancouver: January 10, 2020 – Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased to announce that its subsidiary, Maginito Limited (“Maginito”), has completed the acquisition of an initial 25% interest in HyProMag Limited (“HyProMag”), a private, United Kingdom-based company focused on rare earth magnet recycling, as previously announced on 23 September 2019 (the “Transaction”). 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 Limited (“Talaxis”), a wholly-owned subsidiary of Noble Group Holdings Limited (“Noble”) focused on technology metals investment and development. 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, leading 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.