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Maginito Resources Completes Acquisition of 25% Interest in Hypromag

Mining News - Published on Thu, 16 Jan 2020

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Mkango Resources subsidiary Maginito Limited has completed the acquisition of an initial 25% interest in HyProMag Limited, a private, United Kingdom-based company focused on rare earth magnet recycling, as previously announced on 23 September 2019. 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, a wholly-owned subsidiary of Noble Group Holdings Limited focused on technology metals investment and development. Maginito is a related party of Mkango, Talaxis and Noble.

Highlights of the Transaction include:

HyProMag has licenced a patented process for extracting and demagnetising neodymium iron boron alloy powders from magnets embedded in scrap and redundant equipment named HPMS Hydrogen Processing of Magnet Scrap. This was originally developed within the Magnetic Materials Group at the University of Birmingham.

Maginito has invested £300,000 for an initial 25% interest in HyProMag and provided a £200,000 convertible loan facility, both of which will be fully funded from Maginito’s existing cash resources which are earmarked for such strategic investments. Maginito has a four-year option to increase its interest in HyProMag to up to 49% by investing an additional £1 million. Maginito has a right of first refusal to acquire the balance of HyProMag.

The founding directors of HyProMag, comprising Professor Emeritus Rex Harris, former Head of the MMG, Professor Allan Walton, current Head of the MMG, and two Honorary Fellows, Dr John Speight and Mr David Kennedy, are leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, and have significant industry experience. Pursuant to the Transaction, HyProMag has appointed William Dawes, a Director of Maginito and CEO of Mkango, to join the Board of HyProMag.

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Posted By : Rabi Wangkhem on Thu, 16 Jan 2020
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