Cotec Holdings loses $39,000 in Q1
2024-05-30 16:11 ET - News Release
Mr. Julian Treger reports
COTEC HOLDINGS CORP. FILES FIRST QUARTER 2024 RESULTS WITH CONTINUED FOCUS ON OPERATIONAL ROLL-OUT
Cotec Holdings Corp. has filed its unaudited interim condensed consolidated financial statements and the accompanying management discussion and analysis (MD&A) for the three months ended March 31, 2024. The financial statements and MD&A can be accessed under the Company's SEDAR profile at www.sedarplus.ca.
The Company announced a net loss for the quarter of $39,000. This marginal net loss was mainly driven by foreign exchange gains on equity investments offset by the operating costs for the quarter.
Other highlights for the quarter include:
- HyProMag USA LLC ("HyProMag USA") was formally incorporated with CoTec owning 60.3% (50% direct and 10.3% indirect). HyProMag USA will roll out HyProMag's revolutionary patented Hydrogen Processing of Magnet Scrap technology ("HPMS") in the USA which recovers rare earth elements ("REE") from permanent magnets
- BBA USA Inc., PegasusTSI and Weston Solutions Inc. were engaged by HyProMag USA to complete the Bankable Feasibility Study for the roll out of the HyProMag technology in the USA with targeted completion prior to the 2024 year-end ("Feasibility Study")
- Awarded contracts for the National Instrument 43-101 Preliminary Economic Assessment for the Company's Quebec based Lac Jeannine Iron Project ("PEA") to an interdisciplinary team of consultants, engineers and scientists co-led by Addison Mining Services Ltd. and Soutex Inc. Completion of PEA targeted for the first half ("H1") of 2024
- Appointed Mr. Erez Ichilov to the Board of Directors ("Board') effective January 1, 2024Appointed retired Vice-Admiral Robert Harward to the Board effective March 4, 2024Received $975 from the exercise of 1.3 million warrants
- Inclusion in the 2024 TSX Venture top 50(TM) list
Mr. Julian Treger, CEO of the Company commented, "Our activities during the first quarter reflect our continued pivot towards operational roll-out of our technologies. Our main focus for 2024 is the completion of the PEA for our Lac Jeannine project by H1, 2024 and the Feasibility Study for HyProMag USA by year-end. We are also targeting two possible technology investments prior to year-end which are complementary to the existing CoTec portfolio."
"Subject to a positive outcome of the PEA and the Feasibility Study CoTec will proceed with the Feasibility Study of the Lac Jeannine Project and the roll-out of HyProMag in the USA. First revenue from HyProMag USA is targeted in 2026. This truncated timeline will confirm the effectiveness of CoTec's strategy to bring production to market in an expedited manner, with a much-reduced environmental footprint and lower capital intensity than traditional mining projects. The Company continues to positively engage with Federal and Local stakeholders to support these initiatives."
"Insiders of the Company own more than 70 per cent of CoTec's issued equity and continue to provide significant financial support to the Company. Insiders have contributed in excess of $5.4 million to the treasury of the Company since November 2023 through participation in private placements and warrant exercises as they believe that the Company offers a compelling value proposition at these share price lev