Le Lézard
Classified in: Mining industry, Business
Subject: TNM

MagIron Achieves Significant Milestone in its Strategy to Restart Plant 4

GILBERT, Minn., June 30, 2022 /PRNewswire/ -- MagIron LLC ("MagIron" or the "Company) today announced that it has completed the purchase of selected assets from the receivership estate of Prairie River Minerals, LLC ("PRM") (the "Acquisition"). This follows entry of a court order approving the free and clear sale of PRM assets to MagIron by a State of Minnesota district court judge in the Assignment for the Benefit of Creditors action on May 13, 2022. Under the terms of the Acquisition, MagIron will pay total cash consideration of $2.6 million and assume $6.05 million of debt.

MagIron Achieves Significant Milestone in its Strategy to Restart Plant 4

The Acquisition provides MagIron with an attractive portfolio of assets, including a large strategic land package surrounding Plant 4, in-ground mineral rights, plant and equipment fixtures at PRM's processing plants, additional stockpiles of residual iron units, mobile equipment, spare parts, exclusive use of the Jessie Load Out rail facility, useful permits and contracts, and inventory stockpiles of lump iron ore finished product. In addition to significantly de-risking and enhancing the value of MagIron's restart strategy for Plant 4, the acquired assets provide MagIron with the capability to produce iron ore sinter fines and lump ore using PRM's Ultra-High Density Media technology which would accelerate the generation of positive cash flows, subject to market conditions.

The Acquisition will be funded by proceeds raised from the recently issued $5 million secured Convertible Note ("Note"), which will also fund further advancement of preparatory work to support the restart of Plant 4.

Larry Lehtinen, CEO of MagIron said, "We are extremely excited to secure the PRM assets and associated financing commitment. Both transactions mark significant milestones and are a further endorsement of MagIron's strategy to restart Plant 4 and produce high quality, lower carbon iron units which will be critical for the future success and decarbonisation of the US steel industry."

A further update will be provided as and when appropriate.

About MagIron

MagIron was established to support and accelerate the decarbonisation of the steel industry by becoming a key supplier of high quality, low carbon iron units which will be critical for the future success and decarbonisation of the US steel industry. The Company is focused on the restart of Plant 4, a modern, past-producing iron ore concentrator benefiting from over $170 million of prior investment. The facility has previously operated at an annualized run-rate of approximately 2.0 million tonnes per annum ("mtpa") and was designed to expand to 3.0 mtpa relatively quickly and at low capital intensity. Plant 4 is designed to process previously discarded waste materials from historical mining operations and convert it into high grade, low impurity iron ore concentrate. Given the significant historical mining operations across the Mesabi Iron Range in northern Minnesota, there are vast amounts of waste material within close proximity to Plant 4, which are suitable as feedstock to support a multi-decade business plan.


These press releases may also interest you

at 15:13
NACCO Industries® announced today that the Board of Directors declared a regular cash dividend of 20.75 cents per share. The dividend is payable on both the Class A and Class B Common Stock, and will be paid September 15, 2022 to stockholders of...

at 15:11
Roger Harris, president of North American tax and accounting franchise Padgett Business Services, wrote a letter to Commissioner Charles Rettig, urging the IRS to proceed with caution when determining how to use the new funding provided by the...

at 15:00
Reunion Gold Corporation (the "Company") is pleased to announce the appointment of Fred Stanford as Director and Justin van der Toorn as Vice President, Exploration. The appointments reflect the ongoing exploration success at Reunion Gold's Oko West...

at 15:00
An appearance has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) for the purpose of setting a date for the disciplinary hearing in the matter of Robert Barber. The discipline hearing...

at 15:00
Everspring, a leading provider of education technology and services to universities seeking to build or expand their online capabilities, announces an expansion of its partnership with William & Mary's Raymond A. Mason School of Business. In this...

at 15:00
Construction Risk Partners (CRP), a subsidiary of BRP Group, Inc. ("BRP Group" or the "Company") , is pleased to announce the addition of Mark Gloriod to the team as a Partner. Mr. Gloriod will lead CRP's geographic expansion into the mid-west. He...

News published on 30 june 2022 at 22:28 and distributed by: