Metas Corporation raised US$85.2 million in financing from South Korean enterprises

According to a report from Mining.com, The Metals Company (TMC) announced on Monday that Korea Zinc (KZ) will invest $85.2 million in the company, which will significantly aid in advancing its plans for commercial mining of critical minerals from the seabed.

KZ will purchase 19.6 million shares of TMC at a price of $4.34 per share, and this investment will enable KZ to hold a 5% stake in TMC. This also includes a three-year warrant allowing KZ to acquire an additional 6.9 million shares at a price of $7 per share.

TMC is seeking permission from the US government to commence commercial mining of polymetallic nodules from the seabed. These nodules contain nickel, copper, cobalt, and manganese, which are crucial for industries related to the global energy transition, such as electric vehicles, defense equipment, and power grid infrastructure.

In a statement, Gerard Barron, CEO of TMC, said, "This is not just an investment; it is a manifestation of shared values, a timely assistance that will help the US build a resilient supply chain. KZ has the capability to transform TMC's materials into the metal products that the US needs."

The collaboration comes at a time when the US is making every effort to reduce its external dependence on critical minerals. Both the Biden and Trump administrations have prioritized reducing this dependence.

Trump even signed an executive order to expedite seabed mining in international waters, disregarding UN review regulations.

Several countries, including the Cook Islands, Norway, and Japan, are also exploring deep-sea minerals within their respective territorial waters.

Proponents claim that seabed mining has a smaller environmental impact compared to land-based mining. Critics, however, urge caution and call for further research into the long-term ecological harm of deep-sea mining.

Enthusiasts of seabed mining believe it is crucial for meeting global mineral demand. According to the International Energy Agency (IEA), driven by clean energy technologies, demand for copper and rare earth metals is expected to grow by 40%, while demand for nickel, cobalt, and lithium is projected to increase by 60%, 70%, and 90%, respectively.

TMC is one of many companies hoping to engage in deep-sea mining. Others include Impossible Metals from California, JSC Yuzhmorgeologiya from Russia, Blue Minerals Jamaica from Jamaica, and Marawa Research & Exploration from Kiribati.

TMC hopes that KZ's investment will be finalized by June 26.