GRAND RAPIDS, MN—Tacora Resources Inc. announced on November 27 it has closed on the funding required to restart the Scully mine in Wabush, Newfoundland, and Labrador, Canada. This includes US$212 million in private equity and senior secured debt financing, together with existing commitments for up to US$64 million in mining equipment debt financing.
Mining will resume and construction is expected to begin in November. Ramp up is expected in the second quarter of 2019 to 2021. The mine also plans to hire about 280 employees, expected to come from the Labrador West region, the company said.
Tacora purchased all the assets associated with the Scully mine on July 17, 2017. Tacora then completed a feasibility study that confirmed the viability of its restart plans for the mine, secured life of mine access to rail transportation services and ship loading infrastructure, including access to a deepwater ports at Pointe Noire and Sept-Iles, and concluded various regulatory matters with the government of Newfoundland and Labrador, including consultations with local indigenous peoples.
“We are extremely pleased to have the Scully mine restart fully financed and to move forward with hiring the workforce and implementing the various commercial contracts and capital projects to bring the Scully mine back to life,” said Larry Lehtinen, executive chairman and CEO of Tacora.
Tacora negotiated a 100% offtake contract through 2033 with Cargill, one of the largest traders of iron ore in the world, the company said.
Lee Kirk, managing director of Cargill’s Metals business, said, “By extending this agreement through 2033, Cargill is better positioned to provide our customers around the world with greater access to high-quality iron ore.”