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Accesswire
13 days ago
The Metals Royalty Company Inc. Closes Mesabi Royalty Acquisition, Exercises Option to Acquire an Additional 1% Royalty Interest and Appoints Michael Hess as Non-Executive Co-Chairman
1% Royalty Acquisition on One of the United States' Only Large-Scale Sources of Merchant DR-Grade Iron Ore, Establishing Near-Term Royalty Cash Flow and a Dual-Asset Portfolio Foundation1% Royalty Acquisition on One of the United States' Only Large-Scale Sources of Merchant DR-Grade Iron Ore, Establishing Near-Term Royalty Cash Flow and a Dual-Asset Portfolio Foundation Closing Highlights: Mesabi Royalty acquisition closed - TMCR has completed the acquisition of a 1.0% Index-Priced Gross Overriding Production Royalty with a Revenue Floor on the Mesabi Metallics iron ore project in Nashwauk, Minnesota - one of the United States' only new, large-scale sources of merchant DR-grade iron ore pellets and a project that sits at the heart of the American green steel supply chain - for total consideration of $132.5 million, including $7.5 million share consideration issued by TMCR to the vendors. Option exercised to double royalty position to 2.0% for additional consideration - TMCR has exercised its option to acquire an additional 1.0% royalty interest in the Mesabi Project on the same economic terms as the initial acquisition, which, if completed prior to July 31, 2026, would double the Company's royalty to 2.0% of production and double anticipated annual royalty cash flow; the Company intends to seek funding to close the additional interest on or before July 31, 2026, subject to the terms and conditions of the royalty purchase agreement, as amended.
