Mkango Resources Ltd. appointed Cavendish Capital Markets Limited as joint corporate broker effective July 9, 2026, to strengthen its capital markets advisory capabilities. Cavendish, a London-based investment bank regulated by the UK Financial Conduct Authority, will work alongside existing brokers Hannam & Partners and SP Angel. The appointment aims to enhance Mkango's access to market intelligence and investor feedback as it advances its rare earths projects.

The agreement stipulates an annual fee of £50,000, payable quarterly from the company's general working capital. This arrangement covers corporate broking, research services, and general market intelligence regarding Mkango's shares. The contract has an initial term of 12 months, with a provision for termination by one month's notice. Cavendish and Mkango confirmed they are unrelated and unaffiliated entities, with Cavendish holding no direct or indirect interest in Mkango's securities.

Mkango's corporate strategy focuses on becoming a market leader in recycled rare earth magnets, alloys, and oxides through its 79.4% ownership of Maginito Limited. The company is developing sustainable sources of neodymium, praseodymium, dysprosium, and terbium to supply the electric vehicle and wind turbine sectors. Maginito holds a 100% interest in HyProMag Limited and a 90% interest in HyProMag GmbH, targeting short-loop recycling in the UK and Germany, respectively.

The company's asset portfolio includes the Songwe Hill rare earths project in Malawi and the proposed Puławy separation plant in Poland. Both projects have been designated as Strategic Projects under the European Union Critical Raw Materials Act. Songwe Hill has secured US$4.6 million in development funding from the U.S. International Development Finance Corporation for Front End Engineering and Design. Additionally, Mkango signed a Business Combination Agreement with Crown PropTech Acquisitions to list these projects on NASDAQ via a SPAC merger.

HyProMag USA, a joint venture between Mkango Resources Ltd and CoTec Holdings Corp, has increased the projected magnet production capacity at its Texas Hub to 1,526 metric tons annually. The updated project economics indicate a post-tax Net Present Value (NPV) of approximately US$416 million based on current market prices, with a real internal rate of return (IRR) of 26.3%. The company has commenced procurement of long-lead equipment and is targeting commissioning in the second half of 2027.

Following the completion of a Class 2 AACE capital cost estimate in Q4 2025, HyProMag USA has begun ordering critical-path equipment, including three Hydrogen Processing of Magnet Scrap (HPMS) vessels. Detailed engineering is advancing, and the company is engaging with feedstock suppliers and potential offtake partners. The total initial capital cost is estimated at approximately US$152 million, including an 8.2% contingency and detailed design costs, over a one-year construction phase.

Project Economics and Capacity

The detailed engineering for the rare earth magnet recycling and manufacturing operation at the Ironhead facility in Northlake, Texas, supports two pre-processing spoke sites at Intelligent Lifecycle Solution (ILS) facilities in South Carolina and Nevada. The project is designed to have a 40-year operating life.

Operational Developments

HyProMag USA has initiated formal power supply discussions with Oncor Electric Delivery Company LLC, expecting the facility to be predominantly supplied by renewable resources. Preparatory work is underway at the Ironhead building in the Dallas-Fort Worth metro area. Additionally, three Inserma "3rd generation" hard disk drive (HDD) magnet separation systems have been installed at the ILS pre-processing sites in Williston, South Carolina, and Las Vegas, Nevada.

The company is diversifying its feedstock base through its partnership with ILS, targeting bulk NdFeB feedstock such as electric motor rotors, wind turbine magnets, and end-of-life MRI machines. Offtake discussions are ongoing with multiple potential customers, and magnet samples are being provided for product verification.

Strategic Expansion and Financing

HyProMag USA is targeting the completion of a Class 3 AACE estimate and optimal configuration study in Q3 2026 for additional plants. The objective is to expand U.S.-based production to approximately 4,656 metric tons of NdFeB saleable products. The company is also in discussions with three financial institutions to advance project financing.

Julian Treger, CoTec CEO, stated that ordering long-lead items keeps the Texas Hub on track and signals confidence in the project schedule. Will Dawes, Mkango CEO, highlighted the company's competitive advantages, including energy-efficient HPMS and Inserma technologies, which are already commissioned and operating in the UK and Germany.