- TNR Gold (TNR) has closed its July 2022 royalty purchase agreement with an Ontario limited partnership affiliated with Lithium Royalty (LRC)
- The agreement was for the sale of a portion of its net smelter returns (NSR) royalty involving the Mariana Lithium Project in Argentina
- After the closing of the transaction, TNR will hold a 1.5 per cent NSR royalty on Mariana, including a 0.15 per cent NSR royalty held on behalf of a shareholder
- Lithium Royalty is a North American royalty corporation focused on investing in projects in the battery materials sector with an emphasis on lithium
- TNR Gold is working to become the green energy metals royalty and gold company
- TNR Gold (TNR) was up 30.00 per cent, trading at $0.065 at 10:43 AM ET
TNR Gold (TNR) has successfully closed its July 2022 royalty purchase agreement.
The agreement was with an Ontario limited partnership affiliated with Lithium Royalty (LRC) for the sale of a portion of its net smelter returns royalty involving the Mariana Lithium Project in Argentina.
LRC purchased a 0.5 per cent NSR royalty for US$9,000,000, including a 0.05 per cent NSR royalty sold by TNR on behalf of its shareholder.
This represents one-quarter of the NSR royalty held by the company. LRC is an arms’ length party to the company.
As earlier stated, TNR sold the portion of the NSR royalty which is not subject to any buy-back rights.
Upon closing, TNR will hold a 1.5 per cent NSR royalty on Mariana, including a 0.15 per cent NSR royalty held on behalf of a shareholder.
As stipulated by the existing buy-back right, 1.0 per cent of the Mariana NSR royalty can be purchased from TNR for aggregate payment of C$1,000,000 at any time within 240 days of commencement of commercial production.
The company would receive C$900,000 and its shareholder would receive C$100,000 on the completion of a repurchase under the underlying agreement. If such a purchase was made, TNR would hold a 0.45 per cent NSR and its shareholder would hold a 0.05 per cent NSR.
“By monetizing part of our royalty holdings, we are providing an important benchmark for valuations of assets in our royalty portfolio and generating significant capital, while selling to LRC only a portion of our royalty holding on the Mariana Lithium Project,” said Kirill Klip, TNR’s CEO.
Lithium Royalty is a North American royalty corporation focused on investing in projects in the battery materials sector with an emphasis on lithium.
TNR Gold is working to become the green energy metals royalty and gold company.
TNR Gold (TNR) was up 30.00 per cent, trading at $0.065 at 10:43 AM ET.
