Magnetation LLC announced today that it has filed a motion with the US Bankruptcy Court to enter into an asset purchase agreement for substantially all of its remaining assets and certain liabilities to ERP Iron Ore, LLC.
This motion to sell its remaining assets follows Magnetation's entry into a Global Settlement Agreement on August 26, 2016, which was approved by the court on October 6, 2016 and provided for the wind down of operations, the sale of inventory and accounts receivables, the termination of the pellet purchase agreement and the sale of the remaining assets of the company.
ERP Iron Ore, LLC, a subsidiary of ERP Compliant Fuels, LLC, plans to recover high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins in Itasca County of Minnesota. Upon closing of the APA, ERP Iron Ore will own three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, a railroad loading facility in Grand Rapids, MN and a 3.0 million tons per annum iron ore pellet plant in Reynolds, IN.