The Metals Royalty Company is betting big on America’s push to rebuild its steel supply chain — striking a $132.5 million deal to buy a royalty stake in a massive Minnesota iron ore project that executives say could become a cornerstone of the nation’s “green steel” future.

The London-based royalty firm, which trades on Nasdaq under the ticker TMCR, said Wednesday it entered into a definitive agreement to acquire a 1% production royalty interest tied to the Mesabi Metallics iron ore project in Nashwauk, Minn.

The Metals Royalty Company said it will acquire a royalty interest tied to the Mesabi Metallics iron ore project in Nashwauk, Minn., in a $132.5 million deal aimed at expanding exposure to US steel supply chains.

The deal gives TMCR a slice of future production revenue from one of the country’s only iron ore projects, a key raw material used in cleaner electric arc furnace steelmaking.

TMCR said the acquisition price totals $132.5 million, including $125 million in cash and $7.5 million in company…