The Metals Royalty Company (TMCR) said late Monday it closed the acquisition of a 1.0% index-priced gross overriding production royalty with a revenue floor in the Mesabi Metallics iron ore project located in Nashwauk, Minnesota.

The acquisition of the initial royalty was funded concurrently with proceeds from an upsized $80.1 million private placement at $13.00 per share, and a net $43 million draw under its senior secured acquisition credit facility entered into on June 1, the company said.

An additional $7 million delayed draw will be accessible when it completes the acquisition of the additional 1.0% royalty, the company added.

The company said it has exercised the option to buy an additional 1.0% royalty on the same terms as the initial royalty, provided the closing conditions including raising the necessary funding, are satisfied before July 31.

Mesabi Metallics is targeting commissioning of operations in the second half of 2026, the company said.

Metals Royalty added that it has appointed Michael Hess as a director and non-executive co-chairman of the board, effective immediately.