NEW YORK Iron ore concentrates producer Magnetation LLC has closed $110 million in senior secured credit facilities to fund an expansion, the company said Feb. 26.
The funding includes a $25-million revolving credit facility, $50-million term loan and $35-million delayed-draw term loan.
The money will be used for the construction of a 3-million-tonne-per-year iron ore pellet plant in Reynolds, Ind., and two new concentrate reclamation plants in northern Minnesota.
"The new capital allows us to continue to execute our phase-two growth plans in an efficient manner, as well as demonstrate our strong relationship with lenders," Magnetation chief executive officer Larry Lehtinen said.
Magnetation LLC is a joint venture between Nashwauk, Minn.-based Magnetation Inc., which owns 50.1 percent, and West Chester, Ohio-based AK Steel Corp., which owns 49.9 percent.
A version of this article was first published by AMM sister publication Steel First.