Business
CoTec Holdings Corp. Announces Investment in Green Steel Project in Midwestern U.S.
Project has potential to produce high-quality iron ore concentrate at a reduced carbon footp...
About this update from Cotec Holdings Corp
[{"type":"text","content":"CoTec Holdings Corp. Announces Investment in Green Steel Project in Midwestern U.S.Project has potential to produce high-quality iron ore concentrate at a reduced carbon footprintHighlights:CoTec to acquire 15.8% equity interest in MagIron LLC for US$2 millionMagIron has entered into a purchase agreement to acquire a dormant iron ore concentrator based in Grand Rapids, MinnesotaPlant has ability to produce DR grade concentrate by using existing tailings and iron ore fines, reducing its carbon footprint compared to other U.S. steel plantsCoTec will examine the potential of applying technology developed by Binding Solutions Limited (a company in which CoTec has an existing investment) to the plant's production processVANCOUVER, BC / ACCESSWIRE / May 16, 2022 / CoTec Holdings Corp. (TSXV:CTH) (\"CoTec\" or the \"Corporation\") is pleased to announce that it has entered into an agreement to acquire a 15.8% equity interest in MagIron LLC (\"MagIron\") for a US$2 million. MagIron is a U.S. based company that is in the process of acquiring a green iron ore project that it intends to refurbish and bring back into production. The investment includes terms customary for an investment of this nature, including Board representation subject to CoTec maintaining a 10% equity interest.Julian Treger, CEO of CoTec commented; \"We are very excited to support MagIron's development and we believe it has the potential to be the first example of the successful implementation of CoTec's model of acquiring interests in disruptive technologies in the mineral extraction industry and then applying them to various assets. It also underlies how we can create considerable value for CoTec shareholders by investing in undervalued assets and rapidly scaling the underlying business.\"\"MagIron is acquiring the plant at a nominal value relative to its original cost of several hundred million dollars, providing a significant capital advantage to MagIron. With an appropriate funding structure, we believe that the plant has the potential to generate significant value for MagIron, and indirectly CoTec. This value could be further increased if we are able to successfully apply the technology developed by Binding Solutions Limited to the plant's production process, which we are optimistic will be the case\", added Mr. Treger.MagIron has entered into a purchase agreemen...