Overview
- Mesabi agreed to sell 50% of a royalty interest to The Metals Royalty Company for $265 million, with the first $132.5 million tranche closed on June 1, 2026 and the second tranche expected within 60 days.
- The company says most of the proceeds will fund future growth and support near‑term completion as the Nashwauk mine and pellet plant targets start‑up in the third quarter of 2026.
- The transaction implies a valuation above $500 million for Mesabi’s royalty platform and is presented by both firms as third‑party validation of the project’s scale and quality.
- Direct‑reduction (DR) pellets are the key feedstock for electric‑arc‑furnace steelmaking, and Mesabi’s output is intended to cut U.S. dependence on imported merchant DR pellets, notably from Brazil.
- The deal adds to more than $670 million in prior financing commitments and an EXIM indication of support, and Scotiabank served as Mesabi’s exclusive financial adviser on the transaction.