Based on current REE pricing, Not pie in the sky future...

Based on current REE pricing, Not pie in the sky future pricing.

London / Vancouver: November 25, 2024 - CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec") and Mkango Resources Ltd. (AIM/TSX-V: MKA) ("Mkango") are pleased to announce the results of an independent Feasibility Study (the "Feasibility Study") for HyProMag USA, LLC, ("HyProMag USA or the Project") on the development of a state-of-the art rare earth magnet recycling and manufacturing operation in the United States.

The Project is underpinned by the patented Hydrogen Processing of Magnet Scrap ("HPMS") technology developed at the University of Birmingham Magnetic Materials Group and being commercialized by HyProMag in the United States, United Kingdom and Germany. The HPMS process recovers neodymium iron boron ("NdFeB") permanent magnets from end-of-life scrap streams in the form of a demagnetized NdFeB metallized alloy powder for remanufacture into recycled NdFeB magnets with a significantly reduced carbon footprint, and has major competitive advantages versus other magnet recycling methods using chemical processes.

Sintered NdFeB magnets will be produced in the United States using materials sourced in the United States, contributing to security of NdFeB permanent magnet supply and enabling economical, traceable, domestic U.S. production of recycled NdFeB magnets (DFARS compliant[1]) supporting the defense, aerospace, automotive, medical science, hyperscale data centers, robotics, and energy transition industries.

Highlights

· Positive Feasibility Study results for state-of-the art rare earth magnet recycling and manufacturing operation in the United States (the "Project"), with a central Dallas Fort Worth ("DFW"), Texas hub supported by two pre-processing spoke sites in the eastern and western regions of the United States:

o US$262 million post-tax Net Present Value (NPV)[2] and 23% real internal rate of return (IRR) based on current market prices[3], [4]

o US$503 million post-tax NPV2 and 31% real IRR based on forecast market Prices[5],4

o Low all-in sustaining Cost (AISC) of US$19.6 per kg of NdFeB product which compares to current weighted average market prices of US$55 per kg of NdFeB products, the latter reflects underlying prevailing low rare earth prices with significant scope for price recovery

o Expansion potential with the inclusion of a third HPMS vessel within three years following commissioning for an additional capital cost of approximately US$7 million

o A 3D fly through of the Project feasibility design can be found at HyProMag USA Facility Flythrough

· Production of 750 metric tons per annum of recycled sintered NdFeB magnets and 291 metric tons per annum of associated NdFeB co-products (total payable capacity - 1,041 metric tons NdFeB) over a 40 year operating life

· Up-front capital cost of the Project is US$125 million (inclusive of a 10% contingency margin and Class 3 AACE estimated detailed design study and engineering costs) over a 1.7 year construction phase

https://www.londonstockexchange.com/news-article/MKA/hypromag-usa-feasibility-study-results/16778937