The Metals Royalty Company Inc. has secured a US$165 million financing package to fund the acquisition of an additional royalty interest in the Mesabi project in Nashwauk, Minnesota, alongside the full repayment of existing debt and general corporate purposes.

The funding structure comprises a US$140 million offering of convertible secured notes and a US$25 million senior secured term loan facility. Both financing arrangements and the underlying royalty acquisition are expected to close concurrently on or about August 24, 2026, subject to customary closing conditions.

The five-year notes carry an 8.00% annual coupon, structured as 6.00% cash and 2.00% payment-in-kind in the first year, 7.00% cash and 1.00% payment-in-kind in the second year, and 8.00% cash for years three through five. The notes feature an initial conversion price of approximately US$8.66 per share, representing a 37.5% conversion premium above a reference price of US$6.30 per share. They rank as senior secured second-lien obligations.

The separate US$25 million senior secured term loan carries an interest rate of Term SOFR plus 4.00% per annum with a 24-month maturity and a 12-month extension option. The lender will also receive 500,000 common share purchase warrants with a five-year term, set at a 37.5% premium to the reference price. The loan facility ranks ahead of the notes as a senior secured first-lien facility.

In tandem with the financing, the company amended its purchase agreement with Ironclad Royalties LLC for the additional Mesabi royalty. The revised terms increase the share consideration to an aggregate value of US$27.5 million, with a corresponding reduction in the cash portion of the transaction.

The transaction expands the company's footprint at the Minnesota iron ore development following its initial 1.0% royalty acquisition for US$132.5 million in June 2026. Engineering, procurement, and construction across the project reached 95.5% complete as of May 31, 2026, with plant commissioning targeted for July and August 2026.

Read the full announcement: The Metals Royalty Company Announces Fully Allocated US$165 Million Financing to Fund Acquisition of Additional 1.0% Mesabi Royalty