The Metals Royalty Company Inc. has closed its option to acquire an additional 1.0% index-priced gross overriding production royalty on the Mesabi iron ore project in Nashwauk, Minnesota, doubling its total royalty interest in the asset to 2.0%.

The completed acquisition brings anticipated annual royalty revenue to approximately US$22 million, assuming production of 7.28 million tonnes per annum over a 23-year mine life, with a pathway to US$26 million if the project expands output to 8.5 million tonnes per annum.

The transaction was funded through a US$165 million financing package comprising a US$140 million offering of 8.00% convertible senior secured second lien notes due 2031—anchored by a lead order from EdgePoint Investment Group—and a US$25 million senior secured term loan facility provided by Macquarie Bank Limited. Net proceeds from the financing were also used to repay the company's existing senior term loan facility in full and fund general corporate purposes.

Under an amending agreement with Ironclad Royalties, LLC and Mesabi Investments (USA) LLC, the share consideration for the additional royalty was increased from an initial valuation of US$7.5 million to US$27.5 million, resulting in the issuance of 4,365,079 common shares with a corresponding reduction in cash consideration.

The company previously completed the acquisition of its initial 1.0% royalty interest in the Mesabi Project on June 1, 2026, for total consideration of US$132.5 million before exercising the option to secure the second 1.0% slice.

Construction at the project is nearing completion, with overall progress standing at approximately 99%, up from 95.5% as of May 31, 2026. Commissioning of the first processing line is targeted for the third quarter of 2026, with first production scheduled for the fourth quarter of 2026.

“Doubling our royalty position at Mesabi to 2.0% is an important milestone for TMCR and a clear expression of our business strategy. We believe America spent too long outsourcing the minerals its economy and security depend on.”

Executive Co-Chairman and Chief Executive Officer of TMCR

Read the full announcement: The Metals Royalty Company Announces Closing of Additional 1.0% Mesabi Royalty and US$165 Million Financing