Tacora Resources Emerges Stronger After CCAA Sale Transaction

Tacora Resources Inc., a high-grade iron ore concentrate producer, has completed its sale transaction led by a diverse group of investors. The group includes Cargill Incorporated, Millstreet Capital Management, O'Brien-Staley Partners, and Brigade Capital Management LP. The sale signifies a critical turning point for Tacora, according to CEO Brian Penney.

Tacora exits the Companies' Creditors Arrangement Act (CCAA) process with a $250 million equity injection and a renewed business plan. Key benefits include stable government and employee relations, improved supplier agreements, and a promising 10-year offtake agreement with Cargill's metals business.

According to Jerry O'Brien of O'Brien-Staley Partners, direct engagement with investors was essential in resolving prolonged legal and restructuring efforts. By aligning interests, the restructuring process aimed at benefiting employees and stakeholders was streamlined.