CoTec Holdings Corp. Notes HyProMag USA Deployment of Mobile Inserma System, Extending Hard Disk Drive Processing to Customer Sites Across the United States
Recovered circuit board sales are generating revenue that partly offsets magnet-bearing feedstock acquisition and retention costs.
Sentiment and the balance of points
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Rhea-AI Summary
CoTec Holdings (CTHCF) announced that its joint venture, HyProMag USA, deployed its third hard disk drive separation system as a mobile unit. The unit complements fixed operations through Intelligent Lifecycle Solutions in South Carolina and Nevada and is intended for customer trials and on-site processing across the United States.
Commercial sales of recovered printed circuit board material to downstream smelters have generated revenue, partly offsetting the cost of acquiring and retaining magnet-bearing feedstock. Those materials remain in inventory for future rare earth recycling. CoTec expects inventories under contract and in storage, alongside active procurement, to support initial commissioning and ramp-up of Phase 1 at the planned Dallas-Fort Worth facility in 2028. Sourcing is expanding across industrial, healthcare, government and IT asset disposition sectors.
Positive
- Minor pointHyProMag USA deployed its third HDD separation system as a mobile unit for customer-site processing.
- Minor pointCommercial circuit board sales generated revenue, partly offsetting magnet-bearing feedstock acquisition and retention costs.
- Minor point. Forward-looking: it has not happened yet and may not happen.CoTec expects inventory and procurement programs to support Phase 1 commissioning and ramp-up in 2028.
- Minor pointFeedstock sourcing is expanding across industrial, healthcare, government and IT asset disposition sectors.
- Minor pointHyProMag USA is evaluating industrial and transportation feedstock pathways, with pilots and commercial opportunities under review.
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
VANCOUVER, BC / ACCESS Newswire / October 19, 2026 / CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF) ("CoTec" or the "Company") notes the press release issued today by its joint venture, HyProMag USA, LLC ("HyProMag USA"), announcing the deployment of its third Inserma Anoia S.L. ("Inserma") hard disk drive ("HDD") separation system as a mobile processing unit, expanding HyProMag USA's processing and customer engagement capabilities across the United States. The deployment further strengthens HyProMag USA's partnership with Intelligent Lifecycle Solutions ("ILS")1 and supports the expansion of a scalable nationwide platform for the recovery and recycling of rare earth magnets from end-of-life HDDs.
Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities for Phase 1 at the planned Dallas-Fort Worth facility (the "Texas Hub") in 2028. HyProMag USA has also completed commercial sales of recovered printed circuit board ("PCB") material to downstream smelter partners, generating revenue that supports the acquisition and retention of magnet-bearing feedstock inventory.
Key Highlights
- Processing capability expanded: HyProMag USA's third Inserma HDD separation system has been deployed as a mobile processing unit to support customer qualification programs, secure on-site recovery campaigns and future feedstock growth opportunities across the United States.
- Commissioning readiness advanced: Feedstock inventories currently under contract and in storage, together with active procurement programs, are expected to support initial commissioning and ramp-up of Phase 1 activities at the Texas Hub in 2028.
- PCB revenue supports magnet acquisition: Commercial sales of recovered PCB material to smelter partners have generated revenue within the HDD processing flow sheet, partly offsetting the cost of acquiring and retaining magnet-bearing feedstock for future rare earth recycling operations.
- Feedstock channels diversified: Sourcing activities continue to expand across industrial, healthcare, government and IT asset disposition sectors.
- Secure processing platform: R2v3-certified operations, ISO-certified management systems and documented chain-of-custody procedures support secure handling of data-bearing equipment.
- Data center market focus: Mobile processing capability enables on-site recovery programs within hyperscale data centers and secure IT asset disposition environments.
- Inserma testing: A next generation Inserma system designed specifically for the high-capacity HDDs used in hyperscale data centers, including helium-filled units, is currently being tested, with early results indicating processing times of under three seconds per drive and successful processing of modern high-capacity data center formats.
- Partnership network expanding: Relationships across the data center, electronics recycling and rare earth magnet value chain continue to support platform growth.
Julian Treger, Chief Executive Officer of CoTec Holdings Corp., commented: "The deployment of our third Inserma system as a mobile processing unit represents an important step in the development of the Dallas-Fort Worth project. Together with continued progress in feedstock sourcing and commercial PCB recovery, it strengthens our operating platform and expands our ability to engage directly with customers across multiple end markets. These milestones provide increasing confidence in our ability to support commissioning activities and establish a long-term domestic supply of recycled rare earth materials."
Graham Davy, Managing Director of ILS, commented: "The focus of the ILS team has been on demonstrating that HDDs can be efficiently processed into separate, marketable material streams. We have continued to build feedstock inventories, completed commercial sales of recovered PCB materials to smelter partners for HyProMag USA and expanded our capabilities through the deployment of a mobile Inserma system. The mobile unit allows us to work directly with customers at their facilities, supporting trial programs, demonstrating material recovery performance and creating opportunities to secure additional feedstock supply."
Expanding Feedstock Access
To support continued growth in feedstock volumes, HyProMag USA has deployed its third Inserma HDD separation system as a mobile processing unit to complement existing operations in South Carolina and Nevada. Unlike the fixed installations currently operating through the ILS partnership, the system has been configured for mobile deployment and is intended to support customer trials, feedstock development programs and on-site processing campaigns across the United States.
Feedstock inventories currently under contract and in storage, together with active procurement programs, continue to strengthen the feedstock platform and are expected to support initial commissioning and ramp-up activities at the Texas Hub. Feedstock sourcing activities continue to expand beyond HDDs into industrial, healthcare, government and IT asset disposition sectors, increasing confidence in the scalability of HyProMag USA's feedstock platform and supporting future supply requirements for the Texas Hub.
Commercial PCB Recovery
ILS has completed commercial sales for HyProMag USA of recovered PCB material to downstream smelter partners. The sales validate an additional revenue stream within the HDD processing flow sheet and show that value can be recovered from secondary material streams. Magnet-bearing materials are being retained as feedstock inventory for future rare earth recycling operations. Revenue from recovered PCB material partly offsets the cost of acquiring magnet-bearing feedstock, improving the economics of building the inventory required to support Texas Hub operations.
Secure Recovery and Chain of Custody
ILS operates under internationally recognized recycling and management standards, including R2v3 certification and ISO-certified management systems, supporting responsible recycling practices, operational controls and continuous improvement initiatives. The recovery process is supported by documented chain-of-custody procedures designed to provide traceability from collection through processing and final disposition. These controls support the requirements of data center operators, IT asset disposition providers, enterprise customers and government organizations seeking secure and auditable management of end-of-life electronic equipment.
Building Strategic Partnerships
HyProMag USA continues to expand relationships across the electronics recycling, data infrastructure and rare earth magnet value chain. Working alongside data center operators, IT asset disposition providers, recyclers, technology companies and downstream processing partners, HyProMag USA is developing an integrated platform for the collection, recovery and recycling of magnet-bearing materials. HyProMag USA is evaluating additional feedstock pathways, including industrial and transportation-related material streams, with pilot programs and commercial opportunities under review.
About ILS
Intelligent Lifecycle Solutions provides secure recovery, processing and recycling services for end-of-life electronic equipment. Through its operating facilities in South Carolina and Nevada, ILS supports the recovery of valuable materials from electronic waste streams while maintaining robust data security and chain-of-custody protocols.
About HyProMag USA
HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for neodymium iron boron ("NdFeB") magnets, essential components for AI infrastructure, defense systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary Hydrogen Processing of Magnet Scrap ("HPMS") technology, developed over 15 years with over US
Ownership
HyProMag USA LLC is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is
For more information on HyProMag USA, please visit www.hypromagusa.com
About CoTec
CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF) is redefining the future of resource extraction and recycling. Focused on rare earth magnets and strategic materials, CoTec integrates breakthrough technologies with strategic assets to unlock secure, sustainable, and low-cost supply chains.
CoTec's mission is clear: accelerate the energy transition while strengthening strategic mineral supply chains for the countries we operate in. By investing in and deploying disruptive technologies, the Company delivers capital-efficient, scalable solutions that transform marginal assets, tailings, waste streams, and recycled products into high-value critical minerals.
From its HyProMag USA magnet recycling joint venture in Texas, to iron tailings reprocessing and reclamation in Québec, to next-generation copper and iron solutions backed by global majors, CoTec is building a diversified portfolio with long-term growth, rapid cash flow potential, and high barriers to entry. The result is a differentiated platform at the intersection of technology, sustainability, and strategic materials.
For more information, please visit www.cotec.ca
For further information, please contact:
Braam Jonker, Chief Financial Officer - (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" which involve risks and uncertainties, including statements relating to the development of the Texas Hub, the deployment and use of the mobile Inserma system, feedstock inventories and procurement, sales of recovered PCB material, the testing of the next generation Inserma system, the targeted timing of commissioning and ramp-up at the Texas Hub, the diversification of feedstock sources and the development of additional feedstock pathways and partnerships, 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, due to known and unknown risks and uncertainties affecting the Company, including but not limited to: availability of financing; availability of suitable feedstock; equipment performance and reliability; environmental risks and costs; permitting and regulatory risks; labour costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labour disputes and work stoppages; leasing costs and the availability of equipment; heavy equipment demand and availability; contractor and subcontractor performance issues; worksite safety issues; project delays and cost overruns; extreme weather conditions; and social, transport and geopolitical disruptions. 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.sedarplus.ca. The Company assumes no responsibility to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this press release and are encouraged to read the Company's continuous disclosure documents which are available on SEDAR+ at www.sedarplus.ca.
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 press release.
SOURCE: CoTec Holdings Corp.
View the original press release on ACCESS Newswire
FAQ
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What did CoTec announce about HyProMag USA's mobile processing system?
HyProMag USA deployed its third hard disk drive separation system as a mobile processing unit. It complements fixed operations through Intelligent Lifecycle Solutions in South Carolina and Nevada and is intended to support customer trials, feedstock development and on-site processing campaigns across the United States.
When does CoTec expect HyProMag USA's Texas Hub commissioning to begin?
CoTec expects feedstock inventories under contract and in storage, together with active procurement programs, to support initial Phase 1 commissioning and ramp-up in 2028 at the planned Dallas-Fort Worth facility.
How much of HyProMag USA does CoTec own?
CoTec and HyProMag Limited each own 50% of HyProMag USA. HyProMag Limited is wholly owned by Maginito, which is owned 79.4% by Mkango Magnetic Materials and 20.6% by CoTec.
What security controls support HyProMag USA's equipment recovery operations?
Partner Intelligent Lifecycle Solutions operates with R2v3 certification, ISO-certified management systems and documented chain-of-custody procedures. The procedures are designed to provide traceability from collection through processing and final disposition of end-of-life electronic equipment.