Tacora Resources Inc. Selects Successful Bidder in Sale Process

Tacora Resources Inc. has announced that Millstreet Capital Management LLC, OSP, LLC, and Cargill, Inc., collectively termed the "Investors," are the successful bidders in its sale process. Conducted under the Companies' Creditors Arrangement Act before the Ontario Superior Court of Justice, this process is key to Tacora's financial restructuring.

On July 21, 2024, Tacora and the Investors entered into a Subscription Agreement, which includes an equity injection of up to $250 million. The agreement addresses trade amounts, contractual arrangements, and full repayment of the DIP facility. It also ensures the continuation of employment for all Tacora team members and introduces a new offtake agreement with Cargill to boost revenue.

The transactions, subject to court approval, are expected to strengthen Tacora's balance sheet and support its goal to produce over six million tonnes of high-grade iron ore concentrate annually. Tacora’s Executive Vice President and CFO, Heng Vuong, expressed confidence that these steps will lead to a more robust and well-capitalized business.

The company will seek court approval for the agreement and the transactions on July 26, 2024. More information can be found on the Court-appointed Monitor's website.