Mkango Resources (MKA.V) signed an asset purchase agreement with Heraeus Amloy Technologies GmbH, to acquire its Remloy rare earth magnet recycling business for 8 million euros (US$9.4 million) in cash, the company said early Wednesday.
It includes 5 million euros (US$5.6 million) payable on closing, expected within the next three months, and 3 million euros (US$3.5 million) payable two years after closing, said the company.
The initial payment of 5 million euros will be funded from Mkango's existing cash balance, stated the company.
"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," said the company.
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, said the company, and added that 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," added the company.
The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy, it said.
The transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals, said the company.