2023-08-04 10:40 ET - News Release
Mr. Julian Treger reports
BINDING SOLUTIONS LIMITED SECURES US$17.5M INVESTMENT AT INCREASED VALUATION
Cotec Holdings Corp. has noted that Binding Solutions Ltd. (BSL) has secured an additional investment of $17.5-million (U.S.) from Australian-based Mineral Resources Ltd. (MinRes). The fund raise was completed at a further significant increase to Cotec's previously reported investment value.
MinRes has a market capitalization of more than $13.5-billion (Australian) and is a leading diversified resources company with extensive operations in lithium, iron ore, energy and mining services across Western Australia.
BSL will use the proceeds to progress the design and construction of a demonstration plant capable of producing approximately 50 tonnes per hour of cold-bonded iron ore pellets, applying its patented cold agglomeration technology.
Julian Treger, Cotec chief executive officer, commented: "We are very pleased with the progress at BSL. Obtaining an investment from MinRes, which has a demonstrated track record of working with leading multinational iron ore producers, is a further validation of their achievements to date. We look forward to the continued progress of rolling out the BSL technology to support the development of a sustainable, low-carbon, green steel industry. The resulting uplift in the value of our BSL investment is expected to be reflected in our Q3 financial results.
"The continued strong performance of our investments emphasizes the disconnect between the intrinsic value of our portfolio and our market capitalization. Cotec's internal sum of the parts valuation significantly exceeds its market value at the current share price."