Other Deals
Essar-backed US co. Misabi Metallics to sell 50% royalty interest to TMCR for $265-M
Essar Group-backed, Minnesota (USA)-based Mesabi Metallics has agreed to sell a 50% stake in its royalty interest to The Metals Royalty Company (TMCR) for USD 265 million in a transaction that values the royalty platform at more than USD 500 million. The transaction provides fresh capital as the US iron ore project approaches production.The transaction is to be completed in two tranches of USD 132.5 million each, with the first closing on June 1 and the second expected within 60 days. Most of the proceeds will be used to support future growth initiatives of Misabi.Mesabi produces high-grade direct reduction (DR)-grade iron ore pellets. These are critical raw materials used by the US steel industry to manufacture steel via Electric Arc Furnaces (EAFs).
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