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(Sharecast News) - Mkango Magnetic Materials announced further progress at its rare earth magnet recycling facility in Texas on Monday, following the delivery of its first major processing equipment, though trading in the company's shares was temporarily suspended amid plans for a fundraising.
The AIM-listed company said its HyProMag USA joint venture had received the equipment at its Northlake facility, marking another milestone in the development of what is expected to become one of the first commercial-scale integrated rare earth magnet recycling and manufacturing operations in the US.
The facility is targeting annual production of approximately 1,526 tonnes of recycled neodymium-iron-boron (NdFeB) magnets and related products, with plans to create around 100 direct jobs.
Initial magnet cutting and finishing operations are scheduled to begin in the first half of 2027, followed by commissioning of the first phase of integrated recycling and manufacturing operations in mid-2028.
Mkango said electrical power capacity had been secured, permitting was progressing and contractor selection was underway.
The update follows a recent expansion pre-feasibility study outlining the potential to increase annual NdFeB magnet production to around 4,192 tonnes by 2034, alongside total saleable materials output of approximately 6,000 tonnes.
Mkango holds a 79.4% stake in Maginito, which owns the HyProMag group, with the remaining interest held by CoTec Holdings.
Separately, trading in Mkango's AIM-listed shares was suspended from Monday after the company entered a so-called 'capital access window' to facilitate a proposed fundraising.
The fundraising would supplement existing cash reserves and finance the expansion of its recycling and rare earth magnet manufacturing operations, as well as provide general working capital.
Mkango said the temporary trading suspension, alongside a corresponding halt on Canada's TSX Venture Exchange, would remain in place until it announced the outcome of the proposed fundraising.
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