TORONTO, ON / ACCESSWIRE / February 2, 2024 / Tacora Resources Inc. ("Tacora" or the "Company") today announced that it has selected a bid from an ad hoc group of holders of the Company's senior secured notes (the "Ad Hoc Group"), Resource Capital Fund VII L.P. ("RCF") and Javelin Global Commodities (SG) Pte Ltd. ("Javelin" and together with the Ad Hoc Group and RCF, the "Investors") as the Successful Bid under its sale, investment and services solicitation process ("SISP") and as defined therein, conducted pursuant to, and in connection with, its proceedings (the "CCAA Proceedings") before the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (Canada) (the "CCAA").

Following the selection of the Investors as the Successful Bidder under the SISP and as defined therein, the Company and the Investors entered into a subscription agreement (the "Subscription Agreement") on January 29, 2024. The Subscription Agreement contemplates, among other things, an equity injection of US$225 million and a new debt financing in principal amount of US$45 million by the Investors, payment or satisfaction of all of Tacora's secured debt, assumption of all outstanding trade payables, continued employment for all employees of Tacora and entry into a marketing agreement and product purchase and sale agreement and a secured working capital facility of up to US$100 million with Javelin. The transactions will allow Tacora to significantly de-leverage its balance sheet, focus on its long-term plan to invest approximately US$300 million over the next four years to upgrade and modernize the Scully Mine, and achieve the Company's objective of producing in excess of six million tonnes of high grade iron ore concentrate per year. The Subscription Agreement contemplates a target closing date of March 22, 2024.

Joe Broking, Tacora's President and CEO said "the transactions announced today with the Investors represent a successful outcome for Tacora and its stakeholders of the strategic process completed through the CCAA Proceedings. The transactions will allow Tacora to emerge from the CCAA Proceedings as a much stronger and better-capitalized business focused on achieving the full potential of the Scully Mine. We thank all Tacora team members, our suppliers, and other stakeholders for their continued support through the CCAA Proceedings and contributions to this successful outcome."

The Subscription Agreement remains subject to, among other things, Court approval of the Subscription Agreement and the transactions contemplated thereunder. The Company intends to appear before the Court as soon as possible to seek an order approving the Subscription Agreement and the transactions contemplated thereunder.

A copy of the SISP and the Subscription Agreement and more information related to the CCAA Proceedings can be found on the Monitor's website at http://cfcanada.fticonsulting.com/Tacora. Information regarding CCAA Proceedings can also be obtained by calling the Monitor's hotline at 1-833-420-9074 or by email at tacora@fticonsulting.com.

Advisors

Greenhill & Co. Canada Ltd. (Mizuho) is serving as financial advisor and Stikeman Elliott LLP is serving as legal counsel to Tacora. FTI Consulting Canada Inc. is serving as Court-appointed monitor.

GLC Advisors & Co., LLC is serving as financial advisor to the Investors, Osler, Hoskin & Harcourt LLP is serving as legal counsel to the Investors, Bennett Jones LLP is serving as legal counsel to the Ad Hoc Group and Blake, Cassels and Graydon LLP is serving as legal counsel to RCF.

About Tacora Resources Inc.

Tacora is a private company that is focused on the production and sale of high-grade and quality iron ore products that improve the efficiency and environmental performance of steel making and, subject to final process verification and economic assessment, the development of a high purity manganese product for advanced battery technology. The Company owns and operates the Scully Mine, an iron ore concentrate producer located near Wabush, Newfoundland and Labrador, Canada with a production capacity of six million tonnes per year. Additional information about the Company is available at www.tacoraresources.com.

Forward Looking Statements

This press release contains statements that are forward-looking in nature and relate to our expectations, beliefs, and intentions. All statements other than statements of historical fact are statements that could be deemed to be forward-looking. Although Tacora believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors and are not guarantees of future performance and actual results may accordingly differ materially from those in forward-looking statements, and these statements are subject to risks, uncertainties and assumptions that could cause outcomes to differ from our expectations, including risks related to the closing of the transactions contemplated by the Subscription Agreement. The forward-looking information set forth herein reflects Tacora's expectations as at the date of this press release and is subject to change after such date. Tacora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor and Analyst Contact:

Joe Broking
President and Chief Executive Officer
T - +1 (218) 398-0079
E - joe.broking@tacoraresources.com

Heng Vuong
Executive Vice President and Chief Financial Officer
T - +1 (416) 704-8377
E - heng.vuong@tacoraresources.com

SOURCE: Tacora Resources Inc