Highlights
- Mkango Resources secured £3 million via private placement to scale rare-earth magnet recycling in the UK and Germany.
- The company aims to establish leadership in recycled rare-earth magnets through its subsidiary Maginito Limited and HyProMag operations.
- Mkango is pursuing a Nasdaq listing.
- Mkango is advancing strategic projects designated under the EU Critical Raw Materials Act.
In a September 18 press release (opens in a new tab), Mkango Resources Ltd. (opens in a new tab) (AIM/TSX-V: MKA) announced it had conditionally raised £3.0 million (approximately $5.6 million) through a private placement. The company said the funds will help scale its rare-earth magnet recycling and manufacturing businesses in the UK and Germany, while strengthening its balance sheet during what it described as a crucial period of growth.
Financing Details
The offering involves 10 million Units priced at 30 pence ($0.56) each. Each Unit includes one common share and half of one warrant, with each whole warrant exercisable at 45 pence per share for two years following closing. Net proceeds are expected to total about £2.8 million ($5.3 million) after fees.
The issue price represents a discount of 9.32% compared with the trailing five-day volume-weighted average price (VWAP) of Mkango’s shares on AIM and 13.49% on the TSX-V. Subject to approvals, the Subscription is expected to close on or around October 1, 2025, with admission of the new shares to AIM occurring at that time. Following admission, Mkango’s share capital will consist of 345,992,907 common shares. The company noted that it holds no shares in treasury.
Use of Proceeds and Strategic Focus
Mkango said proceeds will be directed toward recycling development costs in the UK and Germany and for ongoing corporate expenses. The company added that the investment ensures momentum for HyProMag’s (opens in a new tab) short-loop magnet recycling operations and supports evaluation of potential rollouts in new jurisdictions.
Through its majority-owned subsidiary Maginito Limited (opens in a new tab), Mkango aims to establish itself as a leader in recycled rare-earth magnets, alloys, and oxides. Maginito holds a 100% stake in HyProMag Ltd. in the UK, a 90% direct and indirect stake in HyProMag GmbH in Germany (assuming conversion of a convertible loan), and a 100% stake in Mkango Rare Earths UK Ltd., focused on long-loop recycling. In partnership with CoTec Holdings Corp (opens in a new tab)., Maginito is also rolling out its HPMS recycling technology into the United States via HyProMag USA LLC, a 50/50 joint venture.
Nasdaq Listing Plans
In parallel, Mkango continues to advance its planned Nasdaq listing for the Songwe Hill project in Malawi and the Pulawy separation project in Poland. These projects are being merged into a publicly traded platform through a Business Combination Agreement with Crown PropTech Acquisitions (opens in a new tab) announced in July 2025. Both Songwe and Pulawy have been designated Strategic Projects under the EU Critical Raw Materials Act (opens in a new tab), underscoring their importance to Europe’s rare-earth supply chain development.
Broker Arrangements
According to the release, JUB Capital Management LLP will receive a commission of 5% in cash and 5% in non-transferable broker warrants, along with a £ a£5,000 corporate finance fee. SP Angel will be entitled to a 1% cash fee on certain proceeds. In total, 500,000 broker warrants are expected to be issued, with a three-year term and exercise price of 30 pence. All commissions, broker warrants, and shares issued on exercise are subject to TSX-V approval and the Canadian statutory hold period of four months plus one day.
Management Comment
CEO William Dawes said the new investment “enables continued momentum on the development and scale-up of the rare earth magnet recycling and manufacturing projects in the UK and Germany, and strengthens the balance sheet in a crucial period as we continue to evaluate opportunities for rolling out HyProMag operations in additional jurisdictions and other new growth opportunities.”
Source: Mkango Resources press release, September 18, 2025.
Tags: Mkango Resources; Maginito; HyProMag; rare earths; magnet recycling; Songwe Hill; Pulawy; CoTec Holdings; Nasdaq; SPAC; EU Critical Raw Materials Act
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