US$92 Million Boost for HyProMag USA: Securing 'Make More in America' Funding from US EXIM Bank
Vancouver, BC & London, UK – June 12, 2024 – CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (“CoTec”) and Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) (“Mkango”) are thrilled to announce a significant milestone for HyProMag USA. The company has received a Letter of Interest for up to US$92 million in financing under the US EXIM Bank’s ‘Make More in America’ initiative. This injection of capital is poised to accelerate the development of HyProMag USA’s rare earth magnet production facility in Magnolia, Arkansas, and marks a crucial step towards bolstering US domestic manufacturing capabilities.
The ‘Make More in America’ initiative is a cornerstone of the Biden-Harris Administration's strategy to strengthen critical supply chains and reduce reliance on foreign sources for essential materials. Rare earth magnets are vital components in numerous industries, including electric vehicles, wind turbines, defense systems, and consumer electronics. Currently, the US relies heavily on imports for these magnets, creating a strategic vulnerability.
HyProMag USA’s planned facility will utilize Mkango’s proprietary hydro-metallurgical process to produce high-quality neodymium-praseodymium (NdPr) magnets from recycled and primary rare earth materials. This innovative approach offers a more environmentally sustainable and cost-effective alternative to traditional production methods, which often involve energy-intensive and polluting processes.
Key Benefits of the US$92 Million Financing:
- Accelerated Facility Development: The funding will significantly expedite the construction and commissioning of the Magnolia, Arkansas facility, bringing it online sooner and contributing to a faster increase in domestic magnet production.
- Strengthened Supply Chain: This investment directly addresses the critical need for a secure and reliable domestic supply of rare earth magnets, reducing dependence on foreign sources.
- Job Creation: The facility is expected to create hundreds of high-paying jobs in Arkansas, stimulating local economic growth.
- Technological Advancement: HyProMag USA’s hydro-metallurgical process represents a significant technological advancement in rare earth magnet production, offering a more sustainable and efficient alternative.
“This Letter of Interest from US EXIM Bank is a resounding endorsement of HyProMag USA’s vision and the critical role we will play in strengthening the US rare earth magnet supply chain,” said [Insert Quote from CoTec or Mkango Executive - e.g., Mark Smith, CEO of Mkango Resources]. “We are deeply grateful for the support of the US government and look forward to working closely with US EXIM Bank to bring this project to fruition.”
The next steps involve finalizing the financing agreement with US EXIM Bank and securing any remaining regulatory approvals. CoTec and Mkango remain committed to delivering on their promise to establish a world-class rare earth magnet production facility in the United States, contributing to a more secure and sustainable future.
About CoTec Holdings Corp. and Mkango Resources Ltd.:
[Briefly describe both companies and their roles in the HyProMag USA venture – 2-3 sentences each]
