COTEC HOLDINGS (CTHCF) Stock News

CoTec Holdings Corp. (CTHCF) has completed the initial closing of its combined LIFE Offering and Private Placement, raising total gross proceeds of approximately $5.21 million through the issuance of 6,679,443 units at $0.78 per unit. Each unit includes one common share and one warrant exercisable at $1.20 for 18 months. The company plans to use proceeds for HyProMag USA's design and engineering, Lac Jeannine drilling program, and general corporate purposes. Kings Chapel, an insider, and certain directors participated in the offering, with Kings Chapel purchasing 641,025 units. Following the closing, Kings Chapel owns 42.06% of outstanding shares. The company expects a final closing by June 2025.

HyProMag, backed by Mkango Resources and CoTec Holdings, has achieved significant technical milestones in its rare earth magnet recycling program using HPMS technology. The company has produced over 3,500 commercial-grade magnets at its University of Birmingham pilot plant, successfully testing them with partners like ZF Automotive and GKN Automotive. The technology has demonstrated effective magnet recovery from various sources, including hard disk drives and electric motor rotors. HyProMag is preparing for commercial production in the UK and Germany (2025) and USA (2027), with a new production-ready HDD magnet separation system expected in Q3. The company has optimized its processes to produce various magnet grades and has initiated an accelerated pilot program targeting two tonnes of HPMS powder production over six months.

HyProMag USA has received a significant Make More in America (MMIA) domestic finance letter of interest from US EXIM Bank for up to $92 million with a 10-year repayment term. The funding is intended for their first integrated rare earth recycling and magnet making facility in Dallas-Fort Worth, Texas. The project aligns with Executive Order 2421 and aims to establish a domestic hub for recycling and manufacturing NdFeB magnets using HPMS technology. The facility is expected to produce 750 metric tons of recycled sintered NdFeB magnets and 807 metric tons of NdFeB co-products annually, creating 90-100 skilled jobs. The project boasts an environmentally friendly footprint of 2.35 kg CO2 eq. per kg of NdFeB product. HyProMag USA is jointly owned by CoTec and HyProMag Limited, with the latter being owned by Maginito (79.4% Mkango, 20.6% CoTec).

CoTec Holdings announced that its investment, Ceibo, has successfully produced copper cathodes at a demonstration plant in Chile, partnering with Compañía Minera San Gerónimo. The demo plant, built in just three months, showcases Ceibo's innovative copper sulfide leaching technology that enables faster and more efficient copper recovery from challenging ores. The technology combines advanced chemistry, data analytics, and AI-driven modeling to process primary sulfide ores like chalcopyrite. CoTec invested in Ceibo's Series B financing round in 2022, which raised over US$30 million, alongside major investors including BHP Ventures and Orion Industrial Ventures. The technology promises significant economic and environmental benefits, including reduced project timelines, lower operating costs, and smaller environmental footprints.

CoTec Holdings Corp. (CTHCF) has filed an amended offering document for its proposed financing, consisting of two parts: a Listed Issuer Financing Exemption (LIFE) Offering and a Concurrent Offering. Each offering aims to raise up to $5 million through the issuance of 6,410,256 units priced at $0.78 per unit. The completion of the LIFE Offering is contingent upon the concurrent completion of the Concurrent Offering, with a minimum requirement of 6,410,257 units for aggregate proceeds of at least $5 million. The Offering is expected to close around June 15, 2025, subject to necessary approvals including TSX Venture Exchange approval. Units from the Concurrent Offering will have a four-month and one-day hold period under Canadian securities laws.

CoTec Holdings Corp. (TSXV:CTH) has received TSXV approval for the conversion component of its convertible loan agreement with Kings Chapel International Limited. The outstanding principal amount of $6,351,387, plus accrued interest of $664,668, can be converted into common shares at CAD$0.75 per share at Kings Chapel's discretion or automatically when the 15-day volume weighted average trading price reaches CAD$1.00. The conversion is capped at 49% ownership for Kings Chapel and affiliates. The agreement involves CEO Julian Treger, making it a related party transaction, but is exempt from certain MI 61-101 requirements. All issued securities will have a four-month statutory hold period.

CoTec Holdings Corp reported its Q1 2025 financial results, highlighting significant progress in its HyProMag USA joint venture for rare earth magnet recycling. The company engaged PegasusTSI and BBA USA for EPCM services and expanded the project scope to include three HPMS vessels. The project received validation through an ISO-compliant study showing exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB. CoTec secured new technologies including Multi-Gravity Technology for iron and manganese recovery and initiated the WaveCracker™ project with McGill University. The company reported a comprehensive loss of $1.7 million, mainly due to G&A expenses of $709k and non-cash losses. During Q1, CoTec made strategic investments in MagIron and drew down $2 million from the Kings Chapel Convertible Loan Agreement, which was amended to increase available funding by $2.5 million.

CoTec Holdings Corp. (CTHCF) has announced a dual financing initiative totaling $10 million. The company plans to raise $5 million through a Listed Issuer Financing Exemption (LIFE) offering of up to 6,410,256 units at $0.78 per unit, and another $5 million through a concurrent private placement of 6,410,257 units at the same price. Each unit includes one common share and one warrant exercisable at $1.20 for 18 months. The proceeds will fund HyProMag USA's detailed design and engineering, the Lac Jeannine property drilling program, and general corporate purposes. The offering is expected to close around June 15, 2025, subject to regulatory approvals.

CoTec Holdings has filed its 2024 audited financial statements, reporting a quarterly net income of $0.5M and annual net loss of $0.2M. The company achieved major milestones through two successful technical studies: the HyProMag USA Feasibility Study and Lac Jeannine Preliminary Economic Assessment.

Key highlights include:

• HyProMag USA (60.3% CoTec-owned) completed a feasibility study showing NPV7% of US$262M and 23% IRR at current prices
• Lac Jeannine Project revealed an Inferred Mineral Resource of 73M tonnes at 6.7% total Fe
• MagIron secured long-term mineral leases supporting 20+ years of operations
• Company raised $5.3M through private placements and secured a convertible loan

CEO Julian Treger expects CoTec to become a resource-producing company by H1 2027, significantly faster than conventional mining companies' 12-15 year timeframe. The company focuses on critical minerals supply chains for Western countries.