Shares of The Metals Company Inc. (NASDAQ: TMC) soared by 28.80% on Monday, closing at $5.59, after the company unveiled a strategic investment agreement with Korea Zinc.
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The Strategic Partnership Through Investment
The global non-ferrous metal refining leader has committed approximately $85.2 million through a private placement involving the purchase of common shares and warrants. This deal marks a significant milestone for TMC as it seeks to redefine critical mineral sourcing in the United States.
The investment, approved by TMC’s Board of Directors, is slated for completion on June 26, 2025, pending customary closing conditions. Korea Zinc will acquire 19.6 million common shares at $4.34 each and obtain a three-year warrant to purchase an additional 6.9 million shares, exercisable at $7.00.
The warrants will be subject to mandatory exercise if TMC shares trade above $10.00 for 20 consecutive sessions. Korea Zinc will become one of TMC’s biggest strategic investors after closure, owning close to 5% of the company’s outstanding shares.
Advancing U.S. Mineral Processing Capacity
Korea Zinc is currently analyzing a bulk sample of polymetallic nodules from TMC USA under an existing Letter of Intent (LOI). Their research and development team is assessing the potential for intermediate processing, refining, and synergy through vertical integration. Both companies are also exploring the possibility of establishing U.S.-based processing and precursor cathode active material (pCAM) manufacturing operations.
Strategic Alignment and Future Impact
As TMC moves closer to obtaining a commercial recovery permit with NOAA and is ready to publish its pre-feasibility study in Q3 2025, this investment greatly improves the company’s strategic position. The “Troika Drive” expansion plan of Korea Zinc is in line with an optimistic outlook for vital U.S. minerals, particularly copper and nickel.
The partnership positions both entities to develop an independent and secure nickel supply chain within the U.S., bypassing Chinese dominance. With a pro forma cash balance of approximately $120 million and active collaboration with Allseas, TMC is poised to launch its Hidden Gem production system upon regulatory approval.
