CoTec Advances Critical Mineral Strategy Amid Second-Quarter Expansion
Vancouver, Friday, 14 August 2026.
CoTec Holdings reported a $7.6 million second-quarter loss while raising $19.1 million through warrants to fund its Texas magnet recycling plant and sustainable mineral projects.
Financial Performance Overview
CoTec Holdings Corp. (TSXV: CTH, OTCQX: CTHCF) reported a net loss of $7.6 million for the second quarter ended June 30, 2026, reflecting increased operational activity and non-cash accounting provisions [1]. For the six-month period ending on the same date, the company disclosed a cumulative net loss of $10.3 million, indicating an implied first-quarter loss of 2.7 million based on the reported interim figures [1]. Cash used in operating activities prior to non-cash working capital changes totaled $2.8 million for the six-month period, highlighting the capital-intensive nature of the company’s development stage [1]. To bolster liquidity, the company recorded gross proceeds of $19.1 million from the exercise of 16,062,749 warrants during the quarter [1].
Operational Deployments
Operational progress was highlighted by developments at HyProMag USA, a joint venture in which CoTec holds a 60.3% interest [1]. In June 2026, the venture occupied a leased property in Denton County, Texas, measuring approximately 11,613 m², intended to house Plant 1 for magnet recycling [1]. Additionally, three Inserma pre-processing and printed circuit board separation units were installed at industrial sites in Williston, South Carolina, and Las Vegas, Nevada [1]. Regarding the Lac Jeannine Project in Québec, management confirmed that a full feasibility study is expected by mid-2027, following a positive updated preliminary economic assessment released in May 2026 [1].
Capital Markets Activity
On August 11, 2026, shortly before the financial filing, CoTec announced a non-brokered private placement offering to raise up to CAD$20 million via unsecured convertible debentures [2]. The debentures carry a 12.5% annual interest rate and are convertible into common shares at a price of CAD$1.75 per share, potentially issuing approximately 11.429 million shares if fully subscribed [2]. Net proceeds are intended for equipment purchases for the HyProMag USA joint venture and general working capital, with the offering expected to close in August 2026 subject to regulatory approval [2]. This financing activity underscores the company’s strategy to fund expansion while navigating the capital requirements of its mineral technology portfolio [1][2].