(Alliance News) - Mkango Resources Ltd on Thursday said its subsidiary, Maginito Ltd, has formed a joint venture with CoTec Holdings Corp for the roll-out of HyProMag's rare earth magnet recycling technology.
HyProMag, a metal processing company, is 100% owned by Maginito.
Vancouver-based mineral exploration and development company Mkango said HyProMag is commercialising rare earth magnet recycling using hydrogen processing of magnet scrap technology in the UK, Germany and the US.
The joint venture will initially focus on completing a scoping and feasibility study for the deployment of three HPMS vessels using HyProMag's technology, said Mkango. The feasibility study is expected to be completed in 2024.
Upon completion, CoTec and Mkango will then decided whether the JV will proceed for construction in the US.
CoTec will fund the initial operations for the JV, which includes the costs of the feasibility study. Mkango added that if the JV proceeds, CoTec will also fund GBP30 million to GBP50 million in developing costs.
The companies will also seek US government funding.
Mkango Chief Executive Officer Will Dawes said: "We see a very significant opportunity in the US market and look forward to working with CoTec and HyProMag as we move into the next phase of growth."
Shares in Mkango were up 0.9% at 10.59 pence each in London on Thursday afternoon.
By Sabrina Penty, Alliance News reporter
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Mkango Res (MKA)