Mentioned:
TMCR -9.69% TMC -14.61%
A new royalty company on the Nasdaq has just cut a deal for iron ore production. But, why?
What’s happening:
- The Metals Royalty Company (NASDAQ: TMCR) has entered into a new deal to acquire a 1.0% production royalty on Mesabi Metalics’ iron ore project
By the numbers:
- The Metals Royalty Company will purchase the 1.0 production royalty for $132.5M USD
- $125M USD will be paid in cash to Mesabi Metallics and $7.5M USD will be issued in common shares
Why it matters:
- This is the first new royalty and streaming deal that The Metals Royalty Company has done since recently going public on the Nasdaq through a direct listing
Going deeper:
- The Metals Royalty Company has publicly stated they expect the new 1.0% production royalty to generate annual cash flow of $13M USD once Mesabi Metallics brings their iron ore mine located in Minnesota into full scale production
- The Metals Royalty Company also notably owns a 2.0% gross royalty on the NORI polymetallic nodule project which is controlled by The Metals Company (NASDAQ: TMC)
