GRAND RAPIDS, Minn., July 17, 2014 /PRNewswire/ -- Magnetation LLC (Magnetation) announced today that it has successfully completed a $100 million senior secured notes tack-on offering. The proceeds from the offering will be used to complete its iron ore expansion projects ahead of schedule and finance the increased production capacity of its new iron ore concentrate plant.
"We are very pleased with the execution on these projects by our Magnetation team members as well as our suppliers and stakeholders," said Larry Lehtinen, CEO of Magnetation. "We look forward to these projects coming online and sending our first shipment of pellets to our partner and customer AK Steel."
Magnetation is currently in the final stages of construction of its new state-of-the-art iron ore pellet plant located in Reynolds, Indiana. The new pellet plant, which was originally scheduled to start-up in the first half of 2015, will begin operating in August or September of this year. Once operational, the pellet plant will employ more than 100 people and produce high quality iron ore pellets to feed AK Steel's blast furnaces in Middletown, Ohio and Ashland, Kentucky.
In addition, the company is in the process of constructing a new iron ore concentrate plant, Plant Four, near Grand Rapids, Minnesota. The production capacity for Plant Four has been increased from 1.6 million tonnes of concentrate per year to 2.0 million tonnes per year. The new facility is scheduled to begin operating in the first quarter of 2015, two quarters ahead of schedule, and will employ more than 120 people once it is fully operational.
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC reclaims high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns and operates two iron ore concentrate plants located in Keewatin, MN and Bovey, MN. Currently, Magnetation LLC is constructing a 3.0 million metric tonne per year iron ore pellet plant in Reynolds, IN and a 2.0 million metric tonne per year iron ore concentrate plant located north of Grand Rapids, MN. Additional information about the company is available at www.magnetation.com.
This news release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy Magnetation's senior secured notes. Magnetation's senior secured notes were offered solely to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside the U.S. under Regulations S of the Securities Act. Magnetation's senior secured notes were not registered under the Securities Act or the securities laws of any other jurisdiction. As a result, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
Phone: (414) 688-0682
SOURCE Magnetation LLC