TMCR doubles Mesabi iron ore royalty stake to 2% with financing
The Metals Royalty Company Inc. (TMCR) has increased its stake in the Mesabi Metallics iron ore project in Minnesota to a 2.0% royalty interest, up from 1.0%, the company announced today. This acquisition was financed through a $140 million issuance of convertible senior secured second lien notes due in 2031 and a $25 million senior secured term loan from Macquarie Bank Limited.
EdgePoint Investment Group led the offering. The notes were priced at 95% of face value with a higher conversion rate, reflecting a 37.5% premium over the reference price. TMCR plans to redeem the notes starting in September 2029. The financing enables TMCR to potentially earn up to $26 million annually from the project, assuming an 8.5 million tonne annual production capacity.
TMCR also maintains a 2.0% royalty on the NORI polymetallic nodule project managed by The Metals Company Inc.
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