Metals Royalty (TMCR) said Friday it raised a financing package comprising $140 million of convertible secured notes and a $25 million senior secured term loan.

The company said the proceeds will fund the acquisition of an additional 1% royalty in the Mesabi Metallics iron ore project in Minnesota, repay the company's existing term loan and support general corporate purposes.

The five-year notes carry an 8% annual coupon and an initial conversion price of about $8.66 per share, representing a 37.5% premium to the $6.30 reference price, while the term loan matures in 24 months with a 12-month extension option, the company said.

TMCR also agreed to increase the share consideration payable to Ironclad Royalties for the Mesabi royalty from $7.5 million to $27.5 million.

Metals Royalty said the financing and Mesabi royalty acquisition are expected to close concurrently around Aug. 24.