Cotec Holdings Corp. To Increase Interest in Maginito Through Loan Note Conversion
Vancouver, British Columbia – May 17, 2023 – CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec” or the “Company”) is pleased to announce that it has notified Mkango Resources Ltd (“Mkango”) and Maginito Ltd (“Maginito”) of its intention to increase its equity position in Maginito from 10 percent to approximately 20.6 percent.
CoTec intends to convert its GBP2 million convertible loan note in Mkango into Maginito stock on completion of Maginito’s recently announced acquisition of the 58 percent equity interest in HyProMag it does not already own.
HyProMag’s patented Hydrogen Processing of Magnet Scrap technology (“HPMS”) enables the recovery and recycling of rare earth magnets embedded in scrap sources such as electronic waste, electric motors and wind turbines. HyProMag has the added capability to then remanufacture the recovered material into rare earth magnets with a significantly reduced carbon footprint. The HPMS technology has benefited from approximately US$100 million in research and development expenditure at the University of Birmingham in the UK and with associated project partners. A pilot plant was successfully launched in the UK in 2022 and a scaled-up plant is expected to be commissioned later this year, with first production is targeted for Q4 2023. A second plant is being developed in Germany with expected commissioning and first production targeted for 2024. These projects have received grant funding from the UK and German governments.
In February 2023 CoTec and Maginito entered into a co-operation agreement in relation to rare earth element (“REE”) opportunities in the US. Pursuant to this agreement, the Parties are in the process of forming a 50/50 joint venture for the roll-out of the HyProMag technology in the US. Scoping studies and site selection are underway ahead of the feasibility study. Discussions with the US Government, potential customers and recycling partners have commenced and are ongoing. The US roll-out will be completed in parallel with the UK and German based developments and will benefit from operational experience and production ramp-up in the UK and Germany. Revenue from the US operation is targeted for 2025/2026.
Julian Treger, CoTec CEO commented; “This conversion will simplify our investment structure in the exciting and revolutionary HyProMag technology to a 20.6 percent equity interest in Maginito and a 50 percent interest in the US operations. The acquisition of HyProMag by Maginito is a significant milestone for all parties involved and we are looking forward to working with the Maginito and HyProMag team in the roll-out of this venture in the US.
”The Maginito investment and subsequent operational roll-out is an example of the CoTec business model of acquiring minority positions in disruptive technology combined with joint venture participation at an operational level. It also allows CoTec to commence, together with its other operational opportunities, its transition from a technology investment company to resource producer.”
CoTec is an ESG-focused company investing in innovative technologies which have the potential to fundamentally change the way metals and minerals can be extracted and processed. The Company is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. CoTec is a publicly traded mining issuer listed on the Toronto Venture Stock Exchange (CTH.V) and the OTCQB (CTHCB).
For further information, please contact:
Braam Jonker – (604) 992-5600
Forward-Looking Information Cautionary Statement
Statements in this press release regarding the Company and its investments which are not historical facts are "forward-looking statements". Forward-looking statements involve risks and uncertainties, including statements relating to management’s expectations with respect to its current and potential future investments in Mkango, Maginito and other entities and technologies and the benefits to the Company which may be implied from such statements. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. For further details regarding risks and uncertainties facing the Company please refer to “Risk Factors” in the Company’s filing statement dated April 6, 2022, a copy of which may be found under the Company’s SEDAR profile at www.sedar.com, and in the Company’s filings with Canadian securities regulators.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.