CoTec Holdings Corp. To Increase Interest In Maginito Through Loan Note Conversion

VANCOUVER, BC / ACCESSWIRE / 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.