VANCOUVER, BRITISH COLUMBIA — January 15, 2026 — Leads & Copy — CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) is highlighting the press release issued yesterday by MagIron LLC, which announced the completion of an independent Definitive Feasibility Study and Reserve and Resource Statement for the restart of MagIron’s Plant 4 facility in Minnesota and the Reynolds Pellet Plant in Indiana. The goal is to produce direct-reduced (“DR”) grade pellets.
The feasibility study, effective as of January 14, 2026, was conducted by Behre Dolbear & Company (USA), Inc. (“Behre Dolbear”).
Key highlights from the Definitive Feasibility Study, as reported by MagIron, include:
A base-case after-tax NPV (4.9%) of approximately US$1.598 billion and an internal rate of return of 27.60%.
The study also showed a payback period of about 3 years and 7 months, and a mine life of roughly 32 years.
Up-front capital costs are estimated at approximately US$435 million, with around US$190 million allocated to mining and rail equipment, which is expected to be leased.
Average annual DR-grade pellet production is projected to be about 2.6 million tonnes, with a total life of mine production of 84 million tonnes.
Life-of-mine average cash costs are estimated at approximately US$92.42 per dry metric tonne of DR pellet (FOB Reynolds).
MagIron is targeting a final investment decision (“FID”) in early 2026.
The MagIron study confirms a technically robust and economically attractive restart plan and positions MagIron to become a domestic supplier of high-quality DR-grade iron units to the U.S. electric arc furnace steel market. The study incorporates pilot-plant test work conducted at the Natural Resources Research Institute at the University of Minnesota, which validated MagIron’s processing flowsheet.
MagIron intends to restart its portfolio of previously operating facilities to achieve production of approximately 2.5 to 2.7 million tonnes per annum of DR-grade pellets using existing infrastructure. The facilities benefit from an estimated US$660 million of historical capital investment and have a replacement value exceeding US$1.3 billion.
MagIron is targeting a FID in early 2026, contingent on the successful completion of its project financing, with refurbishment and upgrade activities targeted to commence in mid-2026, followed by commissioning and ramp-up in early 2027.
Julian Treger, Chief Executive Officer of CoTec, stated that the completion of the feasibility study is an important milestone for MagIron. He added that, based on the company’s reported post-tax base-case economics, CoTec’s approximate 17% ownership interest in MagIron equates to significant attributable value on a pre-financing dilution basis, implying an attributable value to CoTec of approximately US$272 million. Treger said this reinforces the strategic rationale behind CoTec’s investment approach and its focus on advancing assets that strengthen domestic supply chains for critical materials.
CoTec understands that the following Qualified Persons, along with other Qualified Persons, participated in the preparation of the feasibility study:
Mineral Reserves Estimation: Mr. Joseph Kantor, Dr. Robert Cameron
Mineral Resource Estimates: Mr. Joseph Kantor, Dr. Robert Cameron
Mining Engineering: Mr. John Thompson
Mineral Processing and Engineering: Mr. Mark Jorgenson
Environment and Social: Mr. Reinis Sipols
CoTec understands that each of the foregoing Qualified Persons are independent Qualified Persons. None of them have any relationship with CoTec. Each of these foregoing Qualified Persons has reviewed and approved the technical information contained in the news release that is relevant to their area of responsibility and verified the data underlying such technical information.
CoTec has not independently verified the technical information disclosed by MagIron.
Eugene Hercun, VP Finance, +1 604 537 2413
Source: CoTec Holdings Corp.
