A fundraising window opens

Mkango Magnetic Materials (LSE:MKA), the AIM-quoted group previously known as Mkango Resources, used two announcements on Monday 9 November 2026 to put money and machinery side by side. At 7am it said it intended to raise new Capital and was entering a Capital Access Window, under which the offer is conducted before its outcome is published. A Trading halt on the TSX Venture Exchange in Canada began at that day's market open, so the Canadian line of the shares stopped trading while the process runs. Five hours later it reported that HyProMag USA had received the first major process equipment for its planned rare earth magnet recycling and Manufacturing plant at Northlake, Texas.

The size. According to the company, the window and the halt will stay in place until results of the fundraising are announced, and it has said it intends to include a retail offer.

About the company

Mkango Magnetic Materials, previously Mkango Resources, is focused on rare earth magnet recycling and manufacturing. Rare earth magnets, especially neodymium-iron-boron types, are used in electric vehicle motors, wind turbines and electronics. Most of the world's Supply is processed in a small number of countries, so projects that recycle scrap magnets in Europe and North America aim to provide a local source.

Where the money is meant to go

The board has said proceeds would fund capital spending to scale up magnet recycling and rare earth magnet manufacturing, alongside general working capital. The group's recycling interests sit in Maginito, in which LSE:MKA holds 79.4% and CoTec Holdings the remaining 20.6%. Maginito controls the HyProMag businesses in the UK, Germany and the United States. LSE:MKA said in October that it had agreed to acquire a further 10% of HyProMag Germany, which would take that Subsidiary to full ownership.

What the Texas milestone involves

The Northlake Facility is designed to handle about 1,526 tonnes a year of recycled neodymium-iron-boron magnets and to employ roughly 100 people directly. The company has said initial magnet cutting and finishing should start in the first half of 2027, with first-phase commissioning pencilled in for the middle of 2028. Electrical power capacity has been secured and permitting is in progress. HyProMag's process uses hydrogen to break down scrap magnets, which the group says consumes 88% less energy and produces 85% lower carbon emissions than conventional routes.

A pre-feasibility study published on 27 October went further, describing an expansion to around 6,000 tonnes a year of saleable material by 2034 through three further plants and a central finishing hub. Management put the incremental post-tax net present value at up to US$2.1bn, with a post-tax internal rate of return of 31% to 36%. Those are study-stage estimates rather than funded plans.

Why it matters for shareholders

The timing ties the fundraising request directly to visible construction progress in the United States, giving prospective investors a tangible project milestone rather than only study numbers when they decide whether to participate. For existing holders, the immediate question is dilution: any new shares will be priced in the window, and the company has given no assurance that the fundraising will go ahead or raise money. Separately, the group is pursuing a Nasdaq listing for its Mining assets, the Songwe Hill project in Malawi and the Pulawy separation project in Poland, through a subsidiary combining with a blank-cheque company.

How a Capital Access Window works

In a Capital Access Window, the company offers new shares to investors before publishing the size or price of the raise, and the results are announced only after the process closes. The halt on the Canadian exchange stops trading in the Canadian line while the offer runs, which avoids trading on information about the raise. The company has said it intends to include a retail offer so that smaller investors can take part, and the outcome will be announced when the process ends.

The Texas plant in numbers

A plant designed to handle about 1,526 tonnes a year of recycled magnets, employing about 100 people, is a first-stage facility. Cutting and finishing is expected in the first half of 2027, and commissioning of the first phase in the middle of 2028, about 18 months to two years from the time of the equipment delivery. The expansion study describes about 6,000 tonnes a year of saleable material by 2034, which is about four times the first-stage design capacity.

What the study figures mean

A net present value of up to US$2.1bn with an internal rate of return of 31% to 36% sets out the study's view of the Economics for the incremental expansion. These are estimates based on assumptions about prices, costs and volumes, and they depend on the plants being financed and built. The company itself calls them study-stage estimates, so they should be viewed as indications of potential rather than commitments.

The ownership structure

Mkango holds 79.4% of Maginito, with CoTec Holdings holding the other 20.6%. Maginito controls the HyProMag businesses in the UK, Germany and the United States. An agreement to acquire a further 10% of HyProMag Germany would take that Business to full ownership, which means the group would no longer share the German subsidiary's results with other holders. The hydrogen-based process, which uses hydrogen to break down scrap magnets, is claimed to use 88% less energy and generate 85% lower emissions than conventional routes.

Dilution and the retail offer

Raising capital by issuing new shares increases the number of shares in issue, which reduces the percentage held by existing shareholders unless they take part. A retail offer lets smaller shareholders participate, which can limit that effect for those who choose to subscribe. The size and price of the raise will be announced when the process ends.

Risks and the next dates

The Texas timetable depends on permits, equipment delivery, feedstock contracts and financing, any of which could slip. Study economics rest on assumptions about magnet prices and costs that were not detailed. The Nasdaq transaction is conditional on Shareholder approval, a minimum cash condition and exchange approval. Disclosed dates include a 23 November Redemption deadline and a 25 November extraordinary meeting of the blank-cheque company's shareholders. The fundraising result is the next event investors will be watching for.