CoTec Holdings Corp. Subsidiary HyProMag USA LLC. to Benefit from USA 25% Tariff on Permanent Magnets

VANCOUVER, BC / ACCESSWIRE / May 16, 2024 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) ("CoTec" or the "Company") noted the White House's announcement that beginning 2026 the US Government will impose a 25% tariff on imports of Chinese permanent magnets.

CoTec holds a 60.3 percent equity interest (50% direct and 10.3% indirect) in HyProMag USA LLC. ("HyProMag USA"), a company that is targeting the deployment of the revolutionary HyProMag rare earth element ("REE") recycling technology in the USA. The remaining 50% direct equity interest in HyProMag USA is held by Maginito Limited, a 79.4% subsidiary of Mkango Resources Ltd.

HyProMag has licensed the patented technology HPMS (Hydrogen Processing of Magnet Scrap) which is used to extract NdFeB magnets from electrical products such as hard disk drives and EV motors. The extracted NdFeB powder is in the form of an alloy which can be re-processed into different forms and sold back into the supply chain as rare earth permanent magnets.

HyProMag USA is currently completing a feasibility study for the roll-out of the HyProMag technology at three sites in the USA. The current focus is on Texas, Fort Worth for the first recycling spoke and magnet production facility (~500 tonnes of NdFeB finished permanent magnets and alloys per annum).

Julian Treger, CoTec CEO commented; "This announcement will provide further support to the business case of HyProMag USA. Subject to positive conclusion of the feasibility study, HyProMag USA is targeting first revenue by 2026, coinciding with the commencement of these tariffs."

About CoTec

CoTec is a publicly traded investment issuer listed on the TSX Venture Exchange ("TSX- V") and the OTCQB and trades under the symbol CTH and CTHCF respectively. The Company is an environment, social, and governance ("ESG")-focused company investing in innovative technologies. These technologies have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the Company transitions into a mid-tier mineral resource producer.