VANCOUVER – CoTec Holdings Corp. [CTH-TSXV] has invested $2.5 million for a 10% interest in Maginito Ltd., a subsidiary of rare earths project developer Mkango Resources Ltd. [MKA-TSXV, AIM]. In connection with the deal, CoTec and Maginito have agreed to collaborate on the commercialisation of downstream rare earth technologies in the United States.
Under the agreement, CoTec Chief Operating Officer John Singleton has been appointed to the board of Maginito, a company that is now uniquely positioned in complementary short loop and long loop technologies to recycle rare earth NdFeB magnets through its 42% stake in HyProMag Ltd. and 100% interest in Mkango UK, the companies said.
HyProMag and Mkango UK are both focused on long loop rare earth magnet recycling in Germany and the U.K. respectively.
The companies said scoping studies are underway to determine optimal sites in the U.S. and to evaluate the scope of potential rare earth developments, which may include recycling, chemical processing and the production of alloys and magnets.
A new US subsidiary, to be jointly owned by Maginito and CoTec, is to be formed to develop rare earth technology opportunities in the United States.
“We are glad to have closed this investment and are now keen to work swiftly with Mkango to roll-out production into North America,’’ said CoTec CEO Julian Treger. “Underpinned by unique green processing technologies, our development strategy will be very helpful to establish U.S. independence in the rare earth realm and we hope to make further announcements in the coming months to update the market on this process,’’ he said.
“These plants are expected to start generating revenues for CoTec in relatively short order, demonstrating how our growth strategy of applying scalable revolutionary technologies to create profitable green commodity extraction assets works in practise.
On Friday, CoTec shares eased 8.9% or $0.04 to 41 cents and now trade in a 52-week range of 80 cents and 30 cents.
The term rare earth refers to a group of 17 elements that are used to make a range of products and infrastructure that are essential to every day life, including electric vehicles and wind turbines.
Rare earths elements with names like neodymium, promethium, and dysprosium are also key to the production of military equipment and high-tech consumer electronics.
They fall into two sub-groups: light and heavy, with the heavies being more scarce.
Mkango is working to develop sustainable primary and secondary sources of neodymium, dysprosium, praseodymium and terbiujm to supply accelerating demand from electric vehicles, wind turbines and other technologies.
Mkango is developing the Songwe Hill rare earths project in Malawi, with a feasibility study completed in July, 2022 and an environmental, social and heath impact assessment approved by the Government of Malawi in January, 2023.
Mkango and Polish chemical company Grupa Azoty PULAWY are working to develop a rare earths separation plant in Pulawy in Poland. The plant is expected to process purified mixed rare earth carbonate produced at Songwe Hill.
On Friday, Mkango shares eased 14.3% or $0.03 to 18 cents and currently trades in a 52-week range of 47 cents and 16 cents.
