Tacora Resources Inc, an iron ore mining and development company headquartered in Minnesota, has acquired the assets of the idled Scully Mine located in Wabush, Newfoundland and Labrador, Canada. The mine, which is the third largest mine in Canada, was formerly owned by Cliffs Natural Resources and shuttered early in 2014 when pellet prices declined drastically.
Financial terms were not disclosed, but financing was facilitated by Proterra Investment Partners. The acquisition is pursuant to an asset purchase agreement that Tacora executed on June 2, 2017 with Wabush Iron Co. Limited, Wabush Resources Inc. and Wabush Lake Railway Company Limited under the Canadian Companies’ Creditors Arrangement Act.
Tacora announced in a press release that agreements with union members and creditors are in place to immediately begin production. Additionally, Tacora entered into a five-year iron ore sales agreement with Cargill, whereby Cargill will purchase all of the high-grade iron ore concentrate produced by Tacora through 2022. Cargill is an international food, finance and industrial firm also headquartered in Minnesota.