CoTec Holdings has increased its stake in Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) subsidiary Maginito to 20.6% via a £2 million loan conversion.
Maginito owns 100% of HyProMag, a rare earth magnet recycling venture setting up a US joint venture with CoTec.
Julian Treger, CoTec chief executive, said: "With the Maginito conversion completed our focus will be the operational rollout of the HyProMag technology in the United States.
“This conversion simplifies our investment structure in the exciting and revolutionary HyProMag technology to a 20.6% equity interest in Maginito and a direct 50% interest in the US operations.
"The Maginito investment is an example of the CoTec business model of acquiring minority positions in disruptive technology combined with joint venture participation at an operational level."
Will Dawes, Mkango chief executive, added: "We view the completion of CoTec's conversion as an endorsement of the implied value inherent in Maginito and specifically the proprietary HPMS technology.”