Tacora secures $212m cash to restart Scully mine

Minnesota- based Tacora Resources has secured the needed cash to restart the Scully iron ore mine at Wabush, Newfoundland. Funds are available from a $212 million private equity and senior secured debt financing as well as up to $64 million in mining equipment and debt financing.

Tacora acquired the Scully mine in July 2017 and conducted a feasibility study for the mine’s reopening. The results were positive, and the company has a labour contract with the United Steelworkers, life of mine access to rail transport from the mine to Pointe-Noire, Que., and ship loading infrastructure. Tacora has also secured a long term offtake agreement with Cargill Metals.

The mine has been closed since 2014 when former-owner Cliffs Natural Resources pulled out of Canada.

The mine is expected to be back in operation next summer. A workforce of 260 will be needed to produce 6 million tonnes of iron ore per year.