ERP Iron Ore trustee gets approval to sell plant for $4.5 million

By Sarah Lizee

Olympia, Wash., Dec. 10 – ERP Iron Ore, LLC Chapter 7 trustee Nauni J. Manty secured court approval to sell a plant located on property owned by the county of Itasca in Grand Rapids, Minn., according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Minnesota.

The trustee previously accepted an offer from Prairie River Minerals, LLC, which was approved by the court on Sept. 23, 2020, but PRM did not close on the sale.

However, MagIron LLC, a company formed by Audley Capital Partners, LLP and Larry Lehtinen, has offered to buy the plant for $4.5 million. The buyer will also pay to the holders of mechanics liens on the real property an amount equal to $2.00 per dry metric tonne of iron ore concentrate produced and shipped by MagIron, with the payments capped at $15.5 million. Provided, however, that if MagIron makes either $13.5 million in royalty payments within five years after closing or $10.5 million within 42 months after closing, the $15.5 million royalty payment obligation will be deemed satisfied, and the $5.5 million mortgage will be terminated.

ERP is based in Grand Rapids, Minn. An involuntary case against it was converted to a voluntary case on July 17, 2018. The Chapter 7 case number is 18-50378.

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