MFC (MIL) Acquires Pea Ridge Iron Ore Mine
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MFC Industrial Ltd. (NYSE: MIL) today announces that it has acquired, together with its partner in the project, the troubled Pea Ridge Iron Ore Mine located in Sullivan, Missouri, USA. There were numerous contractual disputes and lawsuits with the previous owners of the mine, which have now been settled.
The Company previously acquired various secured debt and interests respecting the properties, with the Company's investment to date, including professional fees, being approximately US$13.0 million to acquire its indirect 50% interest in the Pea Ridge Mine. The previous owners will now retain a 2.6% net smelter returns royalty on ferrous minerals produced at the mine. Additionally, the previous owners hold 70% of a new entity which has a mineral license respecting non-ferrous minerals at the mine, with the remaining 30% of such entity indirectly held jointly by MFC and Alberici.
The Company previously acquired various secured debt and interests respecting the properties, with the Company's investment to date, including professional fees, being approximately US$13.0 million to acquire its indirect 50% interest in the Pea Ridge Mine. The previous owners will now retain a 2.6% net smelter returns royalty on ferrous minerals produced at the mine. Additionally, the previous owners hold 70% of a new entity which has a mineral license respecting non-ferrous minerals at the mine, with the remaining 30% of such entity indirectly held jointly by MFC and Alberici.
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