LONDON - The Metals Royalty Company Inc. (NASDAQ:TMCR) completed the acquisition of a 1% gross overriding production royalty on the Mesabi Metallics iron ore project in Nashwauk, Minnesota, for $132.5 million, according to a press release statement issued today.
The transaction was financed through an $80.1 million private placement at $13 per share and a $43 million draw from a senior secured credit facility with American Life & Security Corp. The credit facility totals $51.8 million, bears 9% annual interest, and has a 36-month maturity.
The company exercised an option to acquire an additional 1% royalty interest on the same terms as the initial acquisition. TMCR intends to raise funding to complete the additional purchase by July 31, 2026, which would double its royalty position to 2% of production.
The Mesabi project is backed by Essar Group, which has invested over $2 billion of equity into the development. The project is targeting commissioning in the second half of 2026 and has a forecasted 23-year mine life. TMCR stated the royalty could generate annual cash flow of approximately $13 million, with potential to double if the additional 1% royalty is acquired.
The company appointed Michael Hess, Chief Investment Officer of Hess Capital, as Non-Executive Co-Chairman of the board, effective immediately. Hess will serve alongside Executive Co-Chairman and CEO Brian Paes-Braga.
TMCR holds a 2% gross overriding royalty on TMC the metals company Inc.’s (NASDAQ:TMC) NORI polymetallic nodule project in the Clarion-Clipperton Zone. TMC is targeting fourth quarter 2027 for offshore installation and commissioning of that project. TMC shares currently trade at $6.36 with a market capitalization of $2.77 billion, posting a strong 12% return over the past week and 35% gain over the past year. According to InvestingPro Tips, while the company saw a significant return over the last week, it remains unprofitable over the last twelve months with an EPS of -$0.79. The platform offers 3 additional exclusive tips for TMC investors.
The Mesabi project produces direct reduction-grade iron ore pellets used in electric arc furnace steelmaking. The facility is located on more than 16,000 acres in northern Minnesota.
Stifel acted as lead placement agent for the private placement, with A.G.P./Alliance Global Partners as co-lead placement agent. Scotiabank served as financial advisor to Mesabi Metallics.
In other recent news, The Metals Company (TMC) reported its Q1 2026 earnings, which revealed a net loss per share of $0.05. This result was in line with analysts’ expectations, reflecting a net loss of $20.6 million, consistent with the previous year’s Q1 results. The earnings announcement did not bring any surprises as the figures matched projections. Analysts had anticipated this performance, and the company delivered accordingly. These developments are part of the ongoing financial activities of TMC. The company’s financial outcomes remain a point of interest for investors and analysts alike. The focus remains on how TMC navigates its financial challenges in the upcoming quarters.
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