Mesabi Metallics Company LLC, backed by the Essar Group, has entered into an agreement to sell a 50% stake in its royalty interest to The Metals Royalty Company Inc. (TMCR) for $265 million, which values the royalty platform at over $500 million. The transaction will occur in two equal tranches of $132.5 million each, with the first tranche closing on June 1, 2026, and the second expected within 60 days. Proceeds from this deal will primarily support Mesabi's growth plans. The company's direct reduction (DR)-grade iron ore project in Minnesota is anticipated to commence production in the third quarter of 2026, positioning Mesabi as one of North America's major domestic producers of merchant DR-grade iron ore pellets. This project is crucial for U.S. steelmaking, which currently relies heavily on imports. TMCR's investment is seen as a significant endorsement of Mesabi's strategic importance in enhancing domestic industrial capacity and securing critical supply chains. The transaction follows substantial financing commitments, including $670 million from various investors, underscoring growing institutional confidence in this major industrial development.