Gold is 2025’s best performer. UBS sees more upside
NEW YORK - Korea Zinc Co., Ltd. has agreed to make a strategic equity investment of $85.2 million in TMC the metals company Inc. (NASDAQ:TMC), purchasing 19.6 million common shares at $4.34 per share, according to a press release statement issued Monday. The investment comes as TMC’s stock has shown remarkable momentum, with a 438% surge over the past six months, according to InvestingPro data.
The deal includes a three-year warrant to purchase an additional 6.9 million common shares at $7.00 per share and a participation right for Korea Zinc to maintain its ownership percentage in future equity offerings. Upon closing, expected June 26, Korea Zinc will own approximately 5% of TMC’s outstanding common shares, joining the company at a time when it carries a market capitalization of $1.57 billion.
Korea Zinc, a leader in non-ferrous metal refining and precursor Cathode Active Material technology, is currently evaluating a bulk sample of nodule material supplied by TMC USA under an existing letter of intent. The company’s R&D team is validating processing and refining pathways for the material.
The investment comes as TMC USA advances discussions with the National Oceanic and Atmospheric Administration on its commercial recovery permit application under U.S. law. On April 24, President Trump issued an Executive Order to accelerate seabed mining through expedited permitting. TMC subsequently submitted applications for a commercial recovery permit and two exploration licenses under the Deep Seabed Hard Mineral Resources Act of 1980.
TMC describes itself as an explorer of seafloor polymetallic nodules containing critical metals for energy, defense, manufacturing, and infrastructure. The company states these nodules could provide nickel, cobalt, manganese, and copper resources.
Following the investment, TMC reports it will have a pro forma cash balance of nearly $120 million. The company expects to release a pre-feasibility study in the third quarter of 2025. While InvestingPro analysis indicates TMC is currently trading above its Fair Value, investors should note that analysts have set price targets ranging from $5.60 to $12.00 per share. For deeper insights into TMC’s valuation and growth potential, including 8 additional ProTips and comprehensive financial metrics, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, TMC the metals company Inc. announced a $37 million financing round to support its seabed metal exploration efforts. This funding, led by Michael Hess and Brian Paes-Braga, aims to advance TMC’s commercial development plans and sustain operations until a potential commercial recovery permit is issued. Additionally, TMC’s subsidiary, The Metals Company USA, received a favorable notice from the National Oceanic and Atmospheric Administration, highlighting compliance with exploration license applications. Meanwhile, H.C. Wainwright initiated coverage on TMC with a Buy rating and a price target of $5.50, citing the company’s pioneering role in deep-sea mining. The Republic of Nauru and TMC’s subsidiary, Nauru Ocean Resources Inc., updated their Sponsorship Agreement to continue benefiting from seafloor mineral resource development. However, Iceberg Research has taken a short position on TMC, raising concerns about financial assumptions and operational challenges. Despite these challenges, TMC remains committed to its mission of supplying critical metals with net positive impacts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.