Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said subsidiary Maginito has completed the transaction to take full ownership of rare earth magnet recycling associate HyPromag.
Maginito, which is 90% owned by Mkango and 10% by partner CoTec, is paying £1 million cash and issuing 9.7 million Mkango shares, worth £1 million, to the vendors in the deal.
The first production from HyPromag is scheduled for the UK in 2023 followed by Germany in 2024, with a parallel technology roll-out into the US.
Up to a further £3 million (C$5.1 million) is payable either in cash or Mkango shares if HyProMag hits set production milestones in the period to 30 June 2026.