VANCOUVER, BC / ACCESSWIRE / May 1, 2023 / CoTec Holdings Corp. (TSXV:CTH) ("CoTec" or the "Company") is pleased to announce that it has invested a further US$101,014 into MagIron LLC ("MagIron").The investment was part of a larger US$400,000 fundraise that was supported by existing shareholders and was done at a pre-money valuation of US$35 million. The funds will be used to further progress the restart of Plant 4 and for general corporate purposes.
CoTec contributed $200,000 to an earlier fund raise in February 2023. These two investments have increased CoTec's equity interest in MagIron from 15.8% to 16.89% on an undiluted basis.
Julian Treger, CoTec CEO commented: "We are pleased with MagIron's progress towards the execution of their strategy to become a green iron producer in the United States. MagIron's latest investment round was concluded at a US$35 million valuation compared to the US$13.4 million post-money valuation of our initial investment, reflecting the progress made by MagIron over the past 12 months and supporting the upward adjustment of the investment in our financial statements."
"We believe that the demand for low carbon resources will continue to intensify and will demand significant green premiums over time. MagIron could be well positioned to benefit from this expected market development and CoTec will continue to support MagIron in this regard."
About CoTec
CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed. The Company is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation. CoTec is a publicly traded mining issuer listed on the Toronto Venture Stock Exchange and trades under the symbol CTH.V
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 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.sedar.com.
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.
SOURCE: CoTec Holdings Corp.
View source version on accesswire.com:https://www.accesswire.com/752092/CoTec-Holdings-Corp-Increases-Interest-in-MagIron
