on Tacora Resources Inc
Tacora Resources Announces Court Approval for Sale
Tacora Resources Inc. announced that the Ontario Superior Court of Justice has approved its sale in connection with the company's proceedings under the Companies' Creditors Arrangement Act (CCAA) on July 26, 2024. The transaction is supported by an investor group including Cargill Incorporated, Millstreet Capital Management, and O'Brien-Staley Partners, with an expected closing date of August 30, 2024.
Tacora operates the Scully Mine in Newfoundland and Labrador, Canada, producing high-grade iron ore concentrate, known as Tacora Premium Concentrate (TPC). TPC is vital for the green steel industry, aiming to produce environmentally friendly steel and aiding in global decarbonization efforts.
In response to liquidity challenges during 2022-2023, Tacora started CCAA proceedings. The investor group's investment of $250 million will enhance Tacora's balance sheet, allowing the company to exit the CCAA. A new 10-year offtake agreement with Cargill and restructured contracts are set to improve cash flow.
Tacora's leadership will include an executive management team and a new board of directors, aiming to maintain strong relations with governments, the local community, and other stakeholders. Tacora's CFO, Heng Vuong, thanked the investor group and expressed optimism about reaching the production goal of 6 Mtpa of high-grade iron ore concentrate.
R. H.
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