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MKANGO RESOURCES LTD. |
COTEC HOLDINGS CORP. |
550 Burrard Street |
755 Burrard Street |
Suite 2900 |
Suite 428 |
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BC V6C 0A3 |
V6Z 1X6 |
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MAGINITO SECURES EXCLUSIVE AGREEMENT WITH INSERMA TO COMMERCIALISE AUTOMATED PRE-PROCESSING OF HARD DISC DRIVES, LOUDSPEAKERS AND ELECTRIC MOTORS FOR HYPROMAG
· Maginito Ltd ("Maginito") (Mkango 79.4%, CoTec 20.6%) and Inserma Anoia S.L ("Inserma") have entered into a binding and exclusive agreement (the "Agreement") to collaborate on the optimisation, commercialisation and roll-out of pre-processing technologies for HyProMag in the
· The latest mobile Inserma unit for hard disc drives ("HDD") can be co-located at hyperscale data centres, shredding, recycling or HyProMag facilities. These Inserma units rapidly remove (at <3 seconds per HDD) the Voice call Motor ("VCM") containing the rare earth magnet, providing a highly concentrated feed for subsequent Hydrogen Processing of Magnet Scrap ("HPMS") by HyProMag - the simultaneous removal of the centre spindle also facilitates downstream shredding of the rest of the HDD
· The technology not only provides a steady neodymium ("NdFeB") magnet scrap feed to HyProMag, but also has major benefits for sustainable, secure and low cost recycling of HDDs
· The ultimate goal of the collaboration is to enable deployment of hundreds of pre-processing units, across multiple jurisdictions, providing pre-processing solutions for a range of end-of-life applications, including HDDs, loudspeakers and electric motors, and generating feed for HyProMag Limited's ("HyProMag") short loop rare earth magnet recycling process
· The Agreement includes the purchase of an initial three units for pre-processing HDDs by HyProMag and related institutions for the
· Mkango, CoTec and HyProMag are engaging with major hyperscale data centre providers, shredders, recycling companies and other groups which are showing strong interest in deploying the technology in parallel with HPMS
William Dawes, Chief Executive of Mkango commented: "We are very excited to be working with Inserma on the commercialisation of its groundbreaking suite of technologies, which are highly complementary to HyProMag's HPMS technology. We aim to provide a win-win circular solution to customers for recovery of rare earth magnets from a range of applications, lowering the carbon footprint, cost and generating additional benefits from hitherto unrealised value streams."
Paco Ortiz, Director of Inserma commented: "We have a longstanding working relationship with HyProMag, University of
Julian Treger, Chief Executive of CoTec commented: "Inserma has developed a key-pre-processing technology which enables HyProMag
Inserma has extensive experience in metal and magnetic detection, robotics systems, and in designing and building automated sorting systems. Inserma technologies include a range of automated pre-processing systems for rare earth magnet containing scrap streams complementary to HyProMag's HPMS technology.
First-generation Inserma pre-processing units for HDDs, loudspeakers and electric motors have been successfully demonstrated in the EU funded SUSMAGPRO (www.susmagpro.eu) and REESILIENCE (www.reesilience.eu) projects, the latter in partnership with HyProMag, University of
An upgraded, next-generation, fully automated unit for commercial pre-processing of HDDs was recently successfully trialled with thousands of HDD's at HyProMag GmbH's site in
The Inserma pre-processing technology in combination with HyProMag's HPMS technology has major benefits for sustainable, secure and low cost recycling of HDDs:
· Expected VCM removal in less than 3 seconds per HDD;
· Secure data destruction of the remainder of the HDD can remain on site;
· Removal of the rare earth magnet reduces costs and carbon footprint of subsequent shredding;
· Simultaneous removal of centre spindle further facilitates subsequent shredding, and reduces blade breakage, costs and carbon footprint;
· No heat treatment or dismantling required for magnet recovery;
· Facilitates HyProMag's short loop magnet manufacturing process with minimal carbon footprint; and
· Complementary technology for automated Printed Circuit Board Assembly (PCBA) removal under development.
The Agreement
As part of the Agreement, Maginito will assist Inserma with marketing Inserma products and technologies internationally by introducing Inserma to potential customers with whom Maginito is engaging for scrap feed supply, including major hyperscale data centre providers, shredding companies and other potential customers. Furthermore, Maginito will assist with arranging funding, where required, for R&D prototypes, demonstration and commercial plants for deployment internationally, including the initial purchase within the next 12 months by HyProMag, HyProMag GmbH and HyProMag
Inserma will work exclusively with Maginito in the field of rare earths, and Maginito will work exclusively with Inserma in the field of pre-processing solutions for HDDs, loudspeakers and certain aspects of magnet recovery from electric motors, subject to Inserma's continued ongoing support during commissioning, operation and product development of respective pre-processing units, and to achieving certain technical milestones validated by continuous commercial tests at facilities of HyProMag, HyProMag GmbH and HyProMag
Maginito will receive an automatic sub-licence for Inserma intellectual property developed to date in relation to rare earth magnet recovery at zero cost for the period of the Agreement, being two years, automatically extended thereafter for six month periods.
Both Maginito and Inserma will work together to implement the business model for commercialisation, scale-up and international roll-out of the Inserma technologies in parallel with HyProMag technologies, including:
· Joint marketing of pre-processing units for magnet recovery globally;
· Inserma builds, installs, sells or leases the unit to Maginito/HyProMag or to a third party customer;
· Inserma provides technical support to commission and maintain the unit; and
· Maginito has the exclusive offtake rights for pre-processed scrap from the customer.
HyProMag and HPMS Technology
Rare earth magnets play a key role in clean energy technologies including electric vehicles and wind turbine generators, and they are also a key component in electronic devices including mobile phones, hard disc drives and loudspeakers. The development of domestic sources of recycled rare earths via HPMS is a significant opportunity to fast-track the development of sustainable and competitive rare earth magnet production.
HyProMag is commercialising HPMS recycling technology in the
HyProMag's HPMS recycling technology was selected by the Minerals Security Partnership ("MSP") for support as one of its key projects. The technology was selected because the MSP determined its strong potential to contribute towards the development of responsible critical mineral supply chains.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito, which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest (assuming conversion of Maginito's convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet recycling in the
Maginito and CoTec are also rolling out HyProMag's recycling technology into
Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. CoTec is an environment, social, and governance ("ESG")-focused company investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as it transitions into a mid-tier mineral resource producer.
CoTec is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. It has made four investments to date and is actively pursuing operating opportunities where current technology investments could be deployed.
For more information, please visit www.cotec.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango and CoTec. Generally, forward looking statements can be identified by the use of words such as "plans", "expects" or "is expected to", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, the successful conclusion of the MDA, the availability of (or delays in obtaining) financing to develop Songwe Hill, the Recycling Plants being developed by Maginito in the
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
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