CoTec Holdings Secures $20 Million to Boost American Magnet Recycling
Vancouver, Friday, 16 October 2026.
CoTec Holdings completed a $20 million financing round to buy equipment for its Texas magnet recycling venture, strengthening North America’s supply chain for critical green transition materials.
CoTec Holdings Completes $20 Million Private Placement
CoTec Holdings Corp. (TSXV: CTH, OTCQX: CTHCF) announced the completion of its private placement of unsecured convertible debentures on October 15, 2026 [1]. The company successfully raised a total of $20 million through the offering, which included a final closing of $7,941,000 [1]. This final closing represents 39.705 of the total aggregate principal amount raised under the offering [1]. The capital is intended to support ongoing strategic initiatives and expand the company’s portfolio within the green transition supply chain [1]. An initial closing of the private placement was previously completed on September 17, 2026 [1]. The debentures carry a 12.5% annual interest rate, payable semi-annually, with a maturity date of September 10, 2031 [1]. The first interest payment is scheduled for February 28, 2027 [1].
Financing Structure and Insider Participation
Kings Chapel International Ltd., an insider and Control Person, purchased $5,000,000 in debentures during the offering [1]. Julian Treger, the CEO and Director, is a beneficiary of the trust associated with Kings Chapel International Ltd. [1]. Following the final closing, Kings Chapel’s ownership position in the company increased to approximately 42.88% on a partially diluted basis [1]. This represents an increase of 1.33 percentage points from the 41.55% ownership position prior to the closing [1]. The company confirmed the transaction is a related party transaction under MI 61-101 but qualifies for exemptions from formal valuation and minority shareholder approval requirements [1]. Total finder fees for the entire offering included $623,400 in cash and 356,228 compensation warrants [1]. Each warrant is exercisable at $1.75 for 18 months [1].
Texas Hub Development and Power Security
HyProMag USA, LLC, a joint venture involving CoTec, announced it secured electrical power capacity with Oncor Electric Delivery Company LLC for its Texas Hub facility [4]. The announcement regarding the power security was made on October 13, 2026 [4]. The power for the Dallas-Fort Worth facility is expected to be sourced predominantly from renewable energy [4]. Cutting and finishing operations for neodymium iron boron magnet blocks are targeted for commissioning in the first half of 2027 [4]. Phase 1 development is targeted for completion in mid-2028 [4]. Phase 1 production targets approximately 550 tonnes per annum of magnet blocks and finished magnets, plus 484 tonnes of co-products [4]. Pegasus TSI, Inc. has begun contractor selection, while Weston Solutions, Inc. is advancing permitting activities [4].
European Recognition and Copper Partnerships
On October 9, 2026, the European Commission selected HyProMag GmbH as one of 46 Strategic Projects under the European Union’s Critical Raw Materials Act [3]. This designation reflects the growing recognition of rare earth magnet recycling as a component of critical minerals supply chains [3]. In a separate development on October 15, 2026, CoTec entered a non-binding framework agreement with Battery Mineral Resources Corp. [5]. The partnership aims to evaluate opportunities to increase copper production at the Punitaqui mining district in Chile [5]. Under the proposed value-sharing framework, Battery Mineral Resources would retain 100% ownership of existing operations [5]. CoTec and Battery Mineral Resources would split economic participation 50/50 for incremental production generated through CoTec’s technologies [5]. The company continues to evaluate project net present value and return on investment as part of its forward-looking business strategy [1].