HyProMag USA, LLC ("HyProMag USA"), a joint venture between Mkango Resources Ltd (AIM:MKA)(TSXV:MKA) and CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF), has announced an accelerated phased development strategy for its Ironhead facility in Dallas-Fort Worth, Texas. The company is fast-tracking the commissioning of initial finished neodymium-iron-boron ("NdFeB") magnet production equipment to the first half of 2027 (H1 2027). This move allows HyProMag USA to begin supplying finished magnets to U.S. customers earlier than previously planned, leveraging existing supply chains from Europe while building domestic finishing capabilities.

The initial U.S. operations will utilize up to 20 tonnes of magnet blocks supplied by HyProMag Group operations in the United Kingdom and Germany. These blocks will be shaped and finished at HyProMag USA's Texas facility for U.S. customers. Management emphasized that this arrangement does not affect the supply of finished magnet products to European customers from HyProMag's UK and German operations. The early establishment of this capability enables HyProMag USA to work directly with U.S. customers on product specifications, tolerances, coatings, and performance requirements, thereby derisking downstream magnet making and advancing qualification programmes in parallel with the broader Texas Hub development.

Phased Commissioning Timeline

The development strategy separates downstream finishing from upstream recycling to accelerate market entry. The Hydrogen Processing of Magnet Scrap ("HPMS") section, which handles integrated recycling and manufacturing, remains targeted for commissioning in the second quarter of 2028 (Q2 2028). At that stage, HyProMag USA expects to integrate U.S.-sourced magnet-bearing feedstock into its domestic operations.

Once the HPMS section is operational, the facility aims for an initial annual production capacity of approximately 400 metric tonnes of recycled sintered NdFeB magnets and approximately 278 metric tonnes of NdFeB co-products. This represents a total payable capacity of approximately 678 metric tonnes of NdFeB material. Additional equipment installations are expected to support a staged ramp-up to the Texas Hub's full targeted annual capacity of approximately 1,526 metric tonnes of magnetic products.

Strategic Context and Ownership

Julian Treger, Chief Executive Officer of CoTec Holdings Corp., stated that establishing finishing capability in Texas ahead of the integrated plant allows the company to produce customer-ready magnets in the United States and engage directly with customers on specifications. He noted that magnet finishing is a critical part of the value chain with limited commercial-scale capacity available in the U.S.

Will Dawes, Chief Executive of Mkango Resources, highlighted that this development positions HyProMag to supply finished magnets to customers in the UK, Germany, USA, and other markets. He added that the strategy de-risks the route to market while leveraging technical capabilities supported by the University of Birmingham and University of Pforzheim.

HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. and HyProMag Limited. HyProMag Limited is 100% owned by Maginito Limited, which is owned 79.4% by Mkango Resources Ltd and 20.6% by CoTec. As announced on June 22, 2026, HyProMag USA has commenced procurement of long-lead equipment and continues to advance detailed engineering, feedstock aggregation, customer offtake, and project financing discussions. The company is also exploring a potential U.S. listing, having begun engaging prospective advisors and investment banks since December 2025.

Mkango Resources Ltd. will issue 550,000 common shares following the exercise of warrants by a holder at a price of 7 pence per share. The new shares, referred to as Warrant Shares, will rank pari passu with the company's existing shares. This issuance increases the company's capital base while providing liquidity for the warrant holder.

Admission of the Warrant Shares to trading on AIM is expected to become effective at 8:00 am on or around July 27, 2026. The shares will also be listed for trading on the TSX-V. The company has applied for the necessary admission to facilitate these dealings.

Following the admission, the company's issued and outstanding share capital will consist of 387,803,618 shares. Mkango Resources Ltd. confirmed that it does not hold any shares in treasury. This figure serves as the denominator for shareholders to determine if they are required to notify their interest in, or a change to their interest in, the company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Share Capital Details

The transaction is subject to the satisfaction of the requirements of the London Stock Exchange for admission and the acceptance of the TSX Venture Exchange for listing. The expected date of admission is subject to change based on these regulatory approvals.