The Metals Royalty Company (TMCR) has agreed to acquire a 1% gross overriding royalty on Mesabi Metallics’ iron ore project in Minnesota for $132.5 million. The royalty covers up to 8.5 million tons of annual production and could generate as much as $13 million per year once output ramps up.

First production from the Essar Group-backed project is targeted for the second half of 2026, with full output expected in 2027. 

TMCR’s share price slid over 2% to $15.18 after the news, putting its market capitalization at around $888 million.

The deal marks a shift for the newly listed firm, which previously focused on deep-sea mining royalties and now seeks to diversify into critical minerals for the green steel transition.