VANCOUVER, BC / ACCESS CABLE / July 4, 2022 / CoTec Holdings Corp. (TSXV: CTH) (“CoTec” or the “Corporation”) is pleased to announce that MagIron LLC (“MagIron”), in which the Corporation has a 15.8% equity interest, has completed the purchase of selected assets from the receivership estate of Prairie River Minerals, LLC (“PRM”) (the “Acquisition”).
Julian Treger, CEO of CoTec commented; “This acquisition significantly enhances MagIron’s business case through consolidation of the adjacent land package, secure access to substantial additional raw materials, control over valuable infrastructure and equipment, all at a deep level. discount to intrinsic value. This is another big step forward for MagIron in executing its strategy.”
The acquisition follows an order approving the free and clear sale of PRM’s assets to MagIron by a Minnesota state district court in the Assignment for the benefit of creditors action on May 13, 2022.
The Acquisition is of significant strategic interest to MagIron as it allows it to consolidate the land package surrounding Plant 4, along with mineral rights in the ground, additional stockpiles of residual iron units and inventory of finished lump ore product. . It also provides MagIron with exclusive control of the Jessie Load Out rail facility and surrounding infrastructure and various ancillary plant and equipment at PRM’s two processing centers. floorsmobile equipment, spare parts and useful permits and contracts.
In addition to reducing the risk and enhancing the value of MagIron’s restart strategy for Plant 4, the acquired assets provide MagIron with the ability to produce lump ore and iron ore sintered fines using ultra-high-density media technology. of PRM that could accelerate the generation of positive cash flows, subject to market conditions.
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the purchase the consideration for the Acquisition includes cash payments of US$2.6 million and the acceptance of debt of US$6.05 million. The cash consideration will be financed with the recently announced funds of US$5 million.
CoTec is an ESG-focused company that invests in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed in order to apply those technologies to undervalued operating assets, as the company seeks to make the transition to a midsize economy. level mineral resource producer. The company is committed to supporting the transition to a lower carbon future for the extractive industry, a sector that is on the cusp of a green revolution as it embraces technology and innovation.
CoTec is a publicly traded mining issuer listed on Toronto Venture Values Exchange and trade under the symbol CTH.V
For more information contact:
Braam Jonker – (604) 992-5600
Forward Looking Information Warning Statement
statements in this Press release with respect to the Corporation’s and MagIron’s business and the Corporation’s investment in MagIron that are not historical facts are “forward-looking statements” that involve risks and uncertainties, including statements regarding management’s expectations regarding strategy, the financing, acquisition and value of MagIron, the assets of PRM, the development and operation of Plant 4 and the benefits to the Corporation that may arise from said 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 on the risks and uncertainties facing the Corporation, please see “Risk Factors” in the Corporation’s filing statement dated April 6, 2022, a copy of which can be found on the SEDAR profile of the Corporation at www.sedar.com.
Neither the 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.
FONT: CoTec Holdings Corp.