The Metals Company announces $37 million investment to advance deep sea mining development
The Metals Company has just announced a USD37 million dollar investment, as the company's prospect of receiving a deep sea mining licence moves closer to reality.
The funds are expected to cover operations until the commercial recovery permit is issued and will be used to advance 'commercial development plans as well as for general corporate purposes'.
The investment comprises a registered direct offering through a securities purchase agreement with Michael Hess and his affiliated private investment vehicles.
Brian Paes-Braga, Managing Partner at SAF Group is participating alongside Hess in the offering.
In a press release issued a short while ago, The Metals Company touted the investor group's experience in large-scale resource development and deep global relationships across industry, government and capital markets.
Commenting on the development, TMC CEO, Gerard Barron, noted that this was one in a long string of recent good news for the company:
In recent weeks, both our company and the industry have made major strides. On April 24th, President Trump issued an Executive Order to accelerate seabed mining through expedited permitting, evaluation of offtake rights, and potential federal investment. Just days later, TMC submitted the world’s first commercial recovery application for nodules in international waters—more than two months ahead of schedule. We’re thrilled to welcome Michael Hess as a strategic partner. He brings over 15 years of exploration and production experience, as both an investor and operator, along with deep relationships across the U.S.
The press release also include a quote from Michael Hess, who said he had been looking for a company like TMC to invest in:
Brian Paes-Braga and I have been evaluating opportunities in critical minerals for some time, specifically looking for opportunities that will advance America’s mineral independence. We believe TMC is a unique company with the potential to play a key role in that effort. It is exciting to support the emergence of an entirely new resource category of ocean minerals and to help accelerate its development in service of the national interest.”
The news is another boon to TMC as it prepares for an update with investors on Wednesday this week.
TMC closed out 2024 with a net loss of $81.3 million, driven by escalating general and administrative expenses of $30.6 million and exploration spending of $50.6 million in anticipation of commercialisation.
At the end of 2024, TMC said it held cash of approximately $3.5 million and short-term debt of $11.8 million, with an affiliate of Allseas Group SA ($7.5 million) and with the Barron/ERAS unsecured credit facility ($4.3 million) but that total liquidity including cash and borrowing availability would be sufficient to meet working capital and capital expenditure commitments for at least the next twelve months (from December 31, 2024).
Details of the new investment can be found here
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