Mkango Resources has secured funds to pursue the expansion of its HyProMag Rare Earth recycling business, which has operations in the UK and Germany.
Mkango Resources has successfully raised £3.0 million through a private placement of 10 million units priced at 30p each. Each unit includes one common share and half a warrant, with full warrants exercisable at 45p for two years. The issue price represents discounts of 9.32% and 13.49% to recent trading averages on AIM and TSX-V, respectively.
The company will use the £2.8 million in net proceeds to advance rare earth magnet recycling operations across Germany and the UK, alongside covering corporate expenses.
Through its 79.4% stake in Maginito Limited, which controls recycling facilities in both the UK and Germany via HyProMag subsidiaries, Mkango says it plans to become a ‘market leader in the production of recycled rare earth magnets, alloys and oxides’.
“This funding 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,” said William Dawes, Chief Executive of Mkango.
“The Company continues to engage with government and grant funding bodies in the USA, Europe and Asia to advance its projects across the rare earth supply chain.”
“In parallel with development of its recycling and magnet manufacturing businesses, and following the definitive business combination agreement between wholly owned subsidiary, Lancaster Exploration and Crown PropTech Acquisitions announced in July 2025, Mkango is progressing towards the Nasdaq listing of its advanced stage Songwe Hill rare earths project in Malawi and Pulawy separation project in Poland. This will create a publicly traded, vertically integrated, global pureplay rare earths platform, against the backdrop of strong market sentiment in the rare earths sector and focus on development of more robust rare earth supply chains.”
The company targets growing demand from electric vehicles and wind turbines for critical rare earth elements, including neodymium, praseodymium, dysprosium and terbium. Maginito is also expanding into the US market through a joint venture with CoTec Holdings Corp.