CoTec Holdings Corp. Increases Investment in MagIron Following Significant Increase in MagIron Valuation

About this update from Cotec Holdings Corp

[{"type":"text","content":"CoTec Holdings Corp. Increases Investment in MagIron Following Significant Increase in MagIron ValuationVANCOUVER, BC / ACCESSWIRE / June 19, 2023 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (\"CoTec\" or the \"Company\") is pleased to announce that it has invested a further US$120,225 into MagIron LLC (\"MagIron\"). The investment was part of a larger US$500,000 fundraise that was supported by existing shareholders and was completed at a pre-money valuation of US$150 million (\"Fundraise\"). The investment further increases CoTec's equity interest in MagIron from 16.89% to 16.94% on a fully diluted basis. CoTec's initial investment of US$2.1 million was made at a post-money valuation of US$13.4 million.MagIron has successfully completed an extensive campaign of independent laboratory metallurgical test work (\"Test Work\") for its 100% owned Plant 4 iron ore project. The initial results have confirmed a new process flowsheet which has demonstrated the potential to double the historical iron recovery achieved at Plant 4 and to produce Direct Reduction grade iron concentrate.The Test Work was performed under MagIron's direction by independent experts at the Natural Resources Research Institute (\"NRRI\") of the University of Minnesota with assistance from Canadian based Soutex Inc., a consultant specialising in ore processing and metallurgical processes. Applying the results of the Test Work significantly increases MagIron's internal assessment of Plant 4's valuation. This increase in valuation formed the basis of the US$150 million valuation for the Fundraise.The funds will be used to further progress the restart of Plant 4 and for general corporate purposes.Julian Treger, CoTec CEO commented: \"We are very pleased with the results from the Test Work and the progress made to date at MagIron. MagIron will test these results at scale during the second half of the year through a limited restart of Plant 4.\"We believe that the US$150 million valuation of the Fundraise fairly reflects the value added through the Test Work and other initiatives, recognizing the need to continue testing these results at scale. MagIron will endeavour to structure the raise of its restart funding in a way that minimises dilution for current shareholders and reflects the significant progress and value creation since our initial investment.\"At a US$15...

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