Mkango Resources Ltd. (Vancouver, B.C., Canada) has signed an asset purchase agreement with Heraeus Amloy Technologies GmbH, to acquire its Remloy rare earth magnet recycling business for €8 million (US$9.4 million) in cash, of which €5 million (US$5.6 million) is payable on closing, expected within the next three months, and €3 million (US$3.5 million) payable two years after closing (the “Transaction”). The initial payment of €5 million (US$5.6 million) will be funded from Mkango’s existing cash balance following its £12.5 million (US$16.8 million) equity placement, which closed on April 10, 2026.
Remloy has developed a plant in Bitterfeld, Germany, which recycles end-of-life rare earth magnets via a melting process (medium loop recycling) to produce neodymium-iron-boron (“NdFeB”) alloy powders for the bonded and hot deformed magnet markets, complementary to HyProMag’s short loop recycling process to produce sintered magnets.
William Dawes, Chief Executive Officer of Mkango commented: “We are very pleased to announce this Transaction and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours. On April 28, 2026, HyProMag GmbH’s production facility in Pforzheim was officially opened by senior representatives of the German Government and following this Transaction, Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets.”
David Bender, Head of Remloy, commented: “I am very pleased to continue the Remloy journey together with Mkango. The Remloy team has worked hard to develop the business to this point, and the next phase will be about execution: bringing products to customers, scaling commercial activities, and leveraging synergies across the Mkango group. I am convinced that this setup provides a strong basis to further develop rare earth magnet production and recycling capabilities in Germany and Europe.”
Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting scale-up to this level of production over the next few years with minimal capital expenditure required. The assets are currently non-revenue generating and therefore no historic profits are attributable to them, given the facility is still in the start-up phase. Multiple production runs have been completed with the current focus on product optimisation, sample generation for customers and ongoing offtake discussions to support the commencement of commercial sales and targeted scale-up of operations, whilst capitalising on potential synergies with Mkango and HyProMag.
The stockpile comprises more than 300 tons of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialized by HyProMag, which enables cost effective and energy efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.
The Transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals.