Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) shares rose on Thursday after announcing that its partially-owned subsidiary Hypromag USA has commissioned a scoping study to expand its rare earth magnet recycling operations into Nevada and South Carolina.
The study will be carried out by PegasusTSI and BBA USA, alongside recycling partner Intelligent Lifecycle Solutions.
The expansion intends to build on Hypromag’s first US hub in Fort Worth, Texas, and could potentially triple group capacity for recycled NdFeB magnets.
"Momentum continues to gather for HyProMag USA with detailed engineering progressing well, and we are very excited to be pushing forward with the concept study for the expansion project," chief executive Will Dawes said.
"This project can unlock significant additional value for the group and help catalyze further development of a robust domestic ecosystem for rare earth magnet recycling and manufacturing in the United States."
The company said Hypromag USA’s Texas facility has an estimated net present value of around US$600 million, and additional hubs would increase valuation on a linear basis.
Commercial operations at new sites are targeted for the first half of 2027.
In London, Mkango shares were up 10.4%, changing hands at 40.88p.