Star Metro - Cotec Holdings Corp. Provides Operational Update

2024 was a transformative year for CoTec during which two independent technical studies were completed, establishing a solid foundation for revenue generation targeted for early 2027. Additionally, significant progress was achieved by CoTec's investments, including MagIron LLC which is working towards the re-start of its Plant 4 iron ore concentrator in Minnesota, USA and Ceibo, signing a partnership agreement with Glencore plc's Lomas Bayas Mining Company to deploy Ceibo's proprietary leaching technologies.

By focusing on rare earth recycling, green steel, and sustainable copper extraction, CoTec is addressing critical supply chain vulnerabilities for North America and its allies. Our assets are based in the USA, European, Canadian and UK markets, all tier one jurisdictions, and our largely US dollar-based portfolio provides a natural hedge against currency weakness outside of the USA.

Julian Treger, CoTec CEO commented; "2024 was a milestone year for CoTec as we built the operational foundation for what soon will be a revenue generating company. The Board of Directors and management are excited for 2025 and continue to support the Company through the purchase of shares in the market and direct financial support, demonstrating their confidence in the CoTec value proposition and our ability to deliver superior returns to our shareholders. We recognize the material difference between our sum of the parts valuation and our market capitalization, and we are working hard to create market awareness and support for our stock to close this value gap."

"We enter 2025 with clear objectives and confidence in our ability to execute on our target of being a resource producing company by early 2027, merely 5 years after founding the Company. CoTec is well positioned as a sustainable mining company of the future addressing the requirements of critical mineral supply chains and we continue to work closely with our partners and stakeholders to address legacy assets and implement growth prospects from previous low value opportunities."

Recent Highlights

Corporate

• Completed independent technical studies on HyProMag USA and Lac Jeannine, valuing CoTec's undiluted, attributable interest in these two projects at over CAD$300 million¹.

• Directors and management acquired more than 600,000 CoTec shares in the market during H2, 2024, demonstrating confidence in the Company's long-term value proposition.

• Secured a CAD$4.5 million convertible loan facility from Kings Chapel International Limited, a company associated with CoTec CEO Julian Treger. The loan is convertible into CoTec stock at 75c per share, a significant premium to the market price at the time.

• Engaged Peter Epstein and Torrey Hills Capital to assist the Company in its investor relations and market awareness efforts.

Projects

HyProMag USA LLC (60.3% ownership)

• Completed independent feasibility study with NPV_7% of US$262 million, real IRR of 23% and payback period of 3.9 years at current market prices².

• NPV_7% US$503 million, real IRR of 31% and payback of 3.1 years using forecast pricing.

• Initiated EPCM contractor selection to undertake detailed design, engineering and project construction.

• Engaged with USA Government and commercial financial institutions for potential funding of the project.

• Advanced discussions with numerous potential suppliers and off-takers.

• Showcased HyProMag's rare earth magnet recycling and manufacturing projects at the Minerals Security Partnership meeting in Brussels.

• Maginito Limited secured exclusive agreement with Inserma to commercialise automated preprocessing of hard disc drives, loudspeakers and electric motors for all HyProMag operations.

Lac Jeannine (100% ownership)

• Completed preliminary economic assessment with NPV_7% of US$59.5 million and real IRR of 30%³.

• Defined an Initial Inferred Mineral Resource of 73 million tonnes (Mt) at 6.7% total Fe for 4.9 Mt of contained total Fe.

• Identified tailings material surrounding the Inferred Mineral Resource ("Adjacent Tailings") that, if confirmed by drilling and analysis, could potentially add 50 to 70 Mt to the project.

• Commenced process to appoint a drilling contractor to complete infill drilling of 2024 results and expansion drilling on Adjacent Tailings.

• Engaged stakeholders, including First Nations and Investment Quebec, to advance permitting and community support.

Key Operational Targets for 2025

HyProMag USA

• Appoint US based EPCM contractor.

• Complete detailed design and engineering and confirm notice to proceed.

• Ordering of long-lead items and sign lease/acquire property in Fort Worth, Texas where the main project facility will be based.

• Application for all relevant permits and securing off-take and supply contracts.

• Secure financing for the project (Government & commercial) and commence construction.

Lac Jeannine

• Complete infill drilling to upgrade and expand mineral resources.

• Complete a Request for Proposal process for Feasibility Study.

• Commission Feasibility Study.

• Apply for all relevant permits and obtain support from all relevant stakeholders.

Other

• Secure a copper asset opportunity with Ceibo technology.

• Invest in two further technologies complementary to our existing portfolio.

• Build out organisational technical capacity whilst ensuring operational efficiency, and value creation.

The Independent Qualified Person as defined by NI 43-101 for the Lac Jeannine Mineral Resource, Mr. Christian Beaulieu, P.Geo., is a member of l'Ordre des géologues du Québec (#1072). The Qualified Person has reviewed and approved the scientific and technical content of this announcement relating to the Lac Jeannine Mineral Resource.

About CoTec

CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. CoTec Holdings Corp. is a forward-thinking resource extraction company committed to revolutionizing the global metals and minerals industry through innovative, environmentally sustainable technologies and strategic asset acquisitions. With a mission to drive the sector toward a low-carbon future, CoTec employs a dual approach: investing in disruptive mineral extraction technologies that enhance efficiency and sustainability while applying these technologies to undervalued mining assets to unlock their full potential. By focusing on recycling, waste mining, and scalable solutions, the Company accelerates the production of critical minerals, shortens development timelines, and reduces environmental impact. CoTec's strategic model delivers low capital requirements, rapid revenue generation, and high barriers to entry, positioning it as a leading mid-tier disruptor in the commodities sector.

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" that involve risks and uncertainties, including statements relating to management's expectations with respect to CoTec's ability to become a cash-flow generating company and when that will occur, the potential value of the Lac Jeannine and HyProMag USA projects and its current and potential future investments 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.sedarplus.com and its other public disclosure documents.

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.

View the original press release on ACCESS Newswire

L.Côte--SMC