CoTec Investment MagIron Completes Purchase of Reynolds Pellet Plant

Executive Summary

• CoTec Holdings Corp. confirms that its 16.5% owned affiliate, MagIron LLC, has completed the acquisition of the Reynolds Pellet Plant in Indiana from the Receivership Estate of Altos Hornos De Mexico.
• The acquisition positions MagIron to restart pellet production for the U.S. electric‑arc furnace steel market and pursue merchant pig iron development, which CoTec views as a significant growth opportunity.
• CoTec’s management expresses strong support for MagIron’s strategy, indicating potential material contribution to the U.S. steel industry and positive implications for CoTec’s strategic portfolio.

Key Details

• Ownership Stake: CoTec holds 16.5% of MagIron on a fully diluted basis.
• Asset Acquired: Reynolds Pellet Plant (modern straight‑grate, restart‑ready pelletizer) located near Reynolds, Indiana.
• Seller: Receivership Estate of Altos Hornos De Mexico, S.A.B. de C.V.
• Transaction Structure: Completed under the Asset Purchase Agreement (APA); closed on schedule per MagIron’s prior press release dated December 19, 2025.
• Prior Investment in Plant: Approximately $440 million invested before acquisition.
• Strategic Rationale (MagIron): Enables restart of pellet operations, supports job creation in Minnesota and Indiana, and advances integration into the U.S. electric‑arc furnace steel supply chain.
• Strategic Rationale (CoTec): Enhances CoTec’s exposure to downstream steelmaking inputs; potential development of merchant pig iron facilities aligns with CoTec’s broader goal of building a diversified, cash‑flow‑generating portfolio of strategic materials.
• Management Comments:
• Larry Lehtinen, CEO of MagIron – highlighted the milestone and restart strategy.
• Julian Treger, CEO of CoTec – emphasized the plant’s modern capabilities, prior capital investment, and the potential for MagIron to become a significant contributor to U.S. steel production.

Notable Quotes

• “The completion of this transaction marks a significant milestone for MagIron… we now look forward to implementing our restart strategy and bringing significant investment and job creation to both Minnesota and Indiana.” – Larry Lehtinen, CEO, MagIron
• “The Reynolds Pellet Plant is a modern straight grate, past producing, restart‑ready pelletizer benefitting from approximately $440 million of prior investment… if successful, MagIron could become a significant contributor to the USA steel industry.” – Julian Treger, CEO, CoTec