Mkango Completes Acquisition of Remloy

Mkango Resources Ltd. has completed the acquisition of the Remloy rare earth magnet recycling business from Heraeus Amloy Technologies GmbH for €8 million (US$9.3 million). The transaction includes a fully commissioned production facility in Bitterfeld, Germany, with a target capacity of 500 tonnes per year of NdFeB alloy powder, and a significant existing stockpile of approximately 345 tonnes of end-of-life magnets and raw materials.

Payment terms involve €5 million settled in cash at closing, with the remaining €3 million payable in cash on 28 August 2028. The acquisition strengthens Mkango’s position across the rare earth supply chain in Europe and North America, creating synergies with its existing HyProMag and Mkango Rare Earths UK recycling operations.

Mr. David Bender (former co-Head of Heraeus Remloy) has been appointed as Managing Director of Remloy, supported by existing technology and operations leadership. The facility is fully commissioned and currently focusing on small-scale production for product optimization, initial sales, and sample generation while targeting scale-up to full capacity over the next few years.

Mkango Resources Ltd. (MKA) has closed a transaction initially announced in April 2026, adding a fully commissioned medium-loop recycling plant to its portfolio. This acquisition complements the short-loop HPMS technology currently used in the UK and the company's planned US operations. The deal includes a 345-tonne feedstock stockpile, which provides a ready supply of raw material to support the initial ramp-up phase of the German facility, generate early revenue, and validate the medium-loop process.

The strategic expansion was widely anticipated by the market, which had already priced in the associated capital outlay. The transaction was funded from existing cash reserves following the April 2026 equity raise. While the move aligns with management's "one-stop-shop" vision, the incremental financial impact is expected to be modest in the near term as the facility focuses on optimization and sample generation.

Mkango Resources Ltd. is pivoting toward a dual strategy that combines rare earth magnet recycling and manufacturing with upstream mining and separation. The company’s flagship HyProMag recycling platform utilizes patented Hydrogen Processing of Magnet Scrap (HPMS) technology licensed from the University of Birmingham. This infrastructure includes commercial operations in the UK at Tyseley and Germany at Pforzheim, alongside a major development in Texas known as HyProMag USA.

On the upstream side, Mkango holds the Songwe Hill rare earth project in Malawi, where a Definitive Feasibility Study has been completed, and the Puławy separation plant in Poland, which has completed a Pre-Feasibility Study. Both assets are designated as Strategic Projects under the EU Critical Raw Materials Act. The company is currently pursuing a Nasdaq listing for its mining assets through a SPAC merger with Crown PropTech Acquisitions.