US EXIM Bank Approves $92 Million in Financing for Domestic Rare Earth Magnet Manufacturing

LONDON, UK & VANCOUVER, BC – June 12, 2024 – CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (“CoTec”) and Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) (“Mkango”) are excited to announce a significant milestone for HyProMag USA: a Letter of Interest for up to US$92 million in financing from the U.S. Export-Import (EXIM) Bank. This crucial investment falls under the “Make More in America” initiative, demonstrating the U.S. government’s commitment to bolstering domestic manufacturing and supply chain resilience, particularly in critical sectors like rare earth magnets.

Why Rare Earth Magnets Matter

Rare earth magnets are indispensable components in a vast array of modern technologies, including electric vehicles (EVs), wind turbines, medical devices, and defense applications. Currently, the United States relies heavily on foreign sources for these magnets, creating a strategic vulnerability. HyProMag USA’s project directly addresses this challenge by establishing a domestic production facility, reducing dependence on overseas suppliers and strengthening national security.

HyProMag USA: Pioneering Rare Earth Magnet Production

HyProMag USA is poised to become a leading producer of neodymium-praseodymium (NdPr) magnets, utilizing a proprietary technology developed by Mkango Resources. This innovative process leverages recycled and primary rare earth materials, offering a more sustainable and cost-effective alternative to traditional magnet production methods. The planned facility, located in [Insert Location - e.g., Tennessee], will create [Insert Number - e.g., 200+] high-paying jobs and contribute significantly to the local economy.

The “Make More in America” Initiative & EXIM Bank’s Role

The EXIM Bank’s “Make More in America” initiative prioritizes financing projects that support U.S. manufacturing, export growth, and job creation. This Letter of Interest signifies a strong endorsement of HyProMag USA’s project and its alignment with national priorities. The EXIM Bank’s support will be instrumental in securing the necessary funding to commence construction and operations.

What's Next?

This Letter of Interest is a key step towards finalizing the financing agreement. Both CoTec and Mkango are working diligently with the EXIM Bank to complete due diligence and finalize the terms of the loan. The companies anticipate further announcements regarding the project’s progress in the coming months. This investment marks a pivotal moment for HyProMag USA and the broader U.S. rare earth magnet industry, paving the way for a more secure and sustainable future.

Disclaimer: This press release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those projected. Please refer to the companies' filings with the TSX Venture Exchange and AIM for further information.