CoTec Holdings Corp. reports developments in critical-mineral technology, resource extraction and recycling. Company updates center on rare earth magnet recycling through HyProMag USA, iron tailings reprocessing in Québec, copper and iron opportunities, and the use of technologies such as Hydrogen Processing of Magnet Scrap and multi-gravity separation for strategic materials recovery.
Recurring news also covers capital structure activity, including warrants, convertible loan facilities and common share issuance; annual financial statements and MD&A; long-term incentive grants; exchange and OTC market status; and joint venture or portfolio updates tied to CoTec's strategy of pairing resource assets with processing technologies.
CoTec Holdings (CTHCF) completed the final closing of its unsecured convertible debenture placement, bringing total principal issued to $20 million. The final closing added $7,941,000, following the September 17, 2026 initial closing. The debt bears 12.5% annual interest, payable semi-annually in cash, with the first payment February 28, 2027. It matures September 10, 2031 and is convertible into common shares at holders' option.
CoTec intends to use net proceeds for equipment purchases at its HyProMag USA magnet recycling joint venture and general corporate needs. Offering-wide finder compensation totaled $623,400 cash and 356,228 warrants exercisable at $1.75 for 18 months from issuance. Insider Kings Chapel purchased $5 million principal at the final closing; its partially diluted ownership rose from approximately 41.55% to approximately 42.88%, while non-diluted ownership remained approximately 40.51%.
Battery Mineral Resources (BTRMF) and CoTec Holdings (CTHCF) signed a non-binding framework to evaluate additional copper production at Punitaqui in Chile. The proposed joint venture would apply technologies sourced through CoTec to lower-grade sulphide mineralization and tailings.
BMR would retain 100% ownership and economic benefit of its existing operation, including current resources, production and mine plans, under a baseline still to be agreed. Each party would receive 50% economic participation in incremental production and value from CoTec technologies and qualifying new development opportunities.
The parties plan metallurgical testing and preliminary technical and economic evaluations before negotiating definitive agreements. CoTec is expected to bear third-party costs of initial assessment and testing activities it approves. Formation of the venture remains subject to those evaluations and definitive agreements.
CoTec Holdings (CTHCF) announced that its HyProMag USA joint venture secured electrical power capacity for its Texas rare earth magnet project. Oncor capacity covers cutting and finishing operations and Phase 1; Phase 2 power requires a sub-station upgrade. Pegasus has begun contractor selection, while Weston is advancing permitting.
Cutting and finishing commissioning is targeted for H1 2027, initially using neodymium iron boron magnet blocks supplied by HyProMag Group operations. Phase 1 completion is targeted for mid-2028, with designed annual production of approximately 550 tonnes of magnet blocks and finished magnets plus 484 tonnes of co-products. Phase 2 envisages approximately 1,526 tonnes of total payable annual production, including 1,048 tonnes of magnet blocks and cylinders and 478 tonnes of co-products. HyProMag USA expects electricity to come predominantly from renewable resources.
CoTec Holdings (CTHCF) noted HyProMag Germany's selection as a Strategic Project under the European Union's Critical Raw Materials Act.
HyProMag Germany was among 46 projects selected by the European Commission and operates a rare earth magnet recycling and manufacturing facility in Pforzheim, Germany. CoTec owns 20.6% of Maginito, which holds a 90% direct and indirect interest in HyProMag Germany, assuming conversion of Maginito's convertible loan. CoTec also owns 50% of HyProMag USA, which announced the German designation on October 9, 2026. CoTec describes European recycling capacity as complementary to the U.S. venture's objective of establishing a domestic source of recycled rare earth magnetic materials.
CoTec Holdings (CTHCF) finalized terms of a joint venture agreement with Copper Intelligence to pursue historical copper-tailings processing in the Democratic Republic of Congo. Two investment vehicles associated with CoTec’s CEO and chairman are also parties to the venture. The venture will pursue opportunities in the country’s historical copper districts.
The joint venture company is being incorporated in the British Virgin Islands, and formation documents will be executed upon registration. Each potential asset requires legal and technical due diligence, a binding agreement and approval from independent members of both boards before development resources are committed. CoTec expects its technologies to enhance the economic potential of historical tailings sites and redundant copper deposits. The venture will target funding from the U.S. International Development Finance Corporation and other sources once sufficient scale is achieved.
CoTec Holdings (CTHCF) plans to extend its convertible-debenture offering's final closing to on or before October 15, 2026, subject to TSX Venture Exchange approval.
The non-brokered private placement seeks up to $20 million in gross proceeds. An initial closing announced September 17, 2026, raised $12,059,000. Kings Chapel International has agreed to purchase up to $5 million principal amount of debentures at the final closing, but only to the extent that third-party investors have not subscribed for them. Other offering terms are unchanged, and completion remains subject to necessary approvals.
CoTec Holdings Corp. (CTHCF) completed an initial closing of its previously announced non-brokered private placement of unsecured convertible debentures on September 17, 2026, issuing an aggregate principal amount of $12,059,000.
The convertible debentures bear interest at 12.5% per annum, payable in cash only on a semi-annual basis, with first payment due February 28, 2027, and mature on September 10, 2031. They are convertible into common shares at the option of the holder. CoTec expects an additional closing, subject to required approvals, with Kings Chapel International Ltd. agreeing to purchase up to $5 million of debentures not taken up by third parties. Net proceeds are intended for equipment purchases for the HyProMag USA magnet recycling joint venture and for working capital and general corporate purposes.
Finder fees in cash and compensation warrants were paid to several firms, certain insiders participated making this a related party transaction under MI 61-101, and all securities are subject to a four months plus one day hold period.
CoTec (OTCQX:CTHCF) provided an update on commercial deployment of its SCMG2 multi‑gravity separator, a commercial‑scale system for ultra‑fine iron ore recovery. The first SCMG2 unit is being assembled at Salter Cyclones in the UK, with factory acceptance testing scheduled to start in Q3 before shipment to Corem in Québec.
According to CoTec, the SCMG2 will be its cornerstone iron ore recovery asset, supported by an exclusivity and collaboration agreement granting exclusive worldwide rights for iron ore and iron ore waste applications. The Corem platform will be used to test, optimize and demonstrate the technology, including at CoTec’s Lac Jeannine project and potential iron ore tailings opportunities in Brazil, building a pipeline of prospective commercial projects.
CoTec Holdings (TSXV:CTH, OTCQX:CTHCF) reported that portfolio company MagIron, in which it holds about 17% fully diluted, has achieved excellent results in its first independent full pot-grate pellet test program at the University of Minnesota’s NRRI.
The tests, using concentrate from MagIron’s 2025 pilot plant, showed fired pellets with strong durability and performance under direct reduction conditions, supporting suitability for DR-grade pellet and DRI applications. MagIron is also optimizing its process flowsheet, including coarser grind and lower reagent use, which is expected to improve project economics while maintaining concentrate quality. CoTec notes the information comes from MagIron’s public disclosure and has not been independently verified.
CoTec Holdings (TSXV:CTH)(OTCQX:CTHCF) filed its unaudited Q2 2026 interim financial statements and MD&A for the period ended June 30, 2026. The company reported a net loss of $7.6 million for the quarter, driven mainly by non-cash accounting items and financing charges, and a net loss of $10.3 million for the six months.
Key non-cash components included a $1.4 million share of loss from associates/joint ventures, $4 million finance expense largely related to the HyProMag USA receivable, a $568,000 loss on settlement of convertible loans, and $1.1 million in stock-based compensation, partially offset by gains and finance income.
Operationally, CoTec advanced HyProMag USA by installing pre-processing units at U.S. sites, taking occupation of a 125,000-square-foot Texas facility and starting long-lead equipment procurement. At Lac Jeannine, an updated 2026 PEA outlined an after-tax NPV (7%) of US$92 million, a 29.6% IRR, 15-year mine life and 5.4 Mt life-of-mine concentrate production.
Corporate actions included $19.1 million in warrant exercise proceeds, settlement of $2.6 million in convertible loan principal via equity at $1.15 per share, a further $4 million drawdown and subsequent conversion into 3,007,518 shares at $1.33 per share, graduation to the OTCQX market, and signing a term sheet for a copper tailings joint venture in the DRC.