Yes. Thanks for linking that in. Seems like the Blackout without shortening the case as much. The .223/5.56 neck is 5 mm long, so what the 7.62×40 does is include part of the expanded shoulder in the finished neck rather than remove it all, as the Blackout does. That's going to mean thinner brass near the mouth of the 7.62×40 neck than is in the Blackout, but they must must have found that acceptable, as it's only the last 0.127" of neck.
It appears from the article that it does, indeed, use the same magazines, as long as you don't fill them all the way and give the springs too much bullet weight to lift. Obviously uses the same bolt, so the barrel is all that has to be changed. It probably has a reduced gas port diameter to allow for the extra barrel time under pressure.
Patrick, you've got an interesting project there. Please let us know how it turns out.