MagIron to Purchase Plant 4 Concentrator Facility for USD 20m.

MANews-(C)2009-2022

US-based Magiron LLC, a new company established to support and accelerate the decarbonisation of the steel industry, has agreed to acquire the Plant 4 concentrator facility located near Grand Rapids, Minnesota from the bankruptcy estate of ERP Iron Ore, LLC for USD 20m, the company said.

The purchase price for Plant 4 includes upfront cash consideration of USD 4.5m and up to USD 15.5m in production-based royalty payments to various local contractors who held mechanics liens in the ERP Iron Ore bankruptcy case.

The acquisition also includes a strategic land package consisting of 2,483 acres surrounding Plant 4.

In connection with the acquisition, MagIron will enter into a long-term lease with Itasca County for 1,700 acres of land near Plant 4. The transaction is...

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