- TNR Gold (TNR) updates on royalty holdings on Mariana Lithium and partial NSR sale to Lithium Royalty
- This agreement involves the Mariana Lithium Project
- The deal included confirmation that LMA would assume all rights or obligations ILC had in respect of the Mariana property
- The closing of the sale with LRC is subject to the parties’ filing of specific notices in the Salta Mining Court in Argentina
- The company believes that its royalty holdings are undervalued, and their appropriate values are not reflected in its share price
- TNR Gold (TNR) is trading at C$0.035 at 3:30 pm yesterday
TNR Gold (TNR) entered into an extension agreement with an Ontario limited partnership affiliated with Lithium Royalty Corp for selling a portion of its net smelter returns royalty.
This agreement involves the Mariana Lithium Project.
LRC has purchased a 0.5 per cent NSR royalty from TNR 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.
In October, TNR Gold announced that International Lithium had compiled the sale to Ganfeng Lithium Netherlands Co., the owner of the Mariana Lithium Project in Salta, Argentina.
The deal included confirmation that LMA would assume all rights or obligations ILC had in respect of the Mariana property.
TNR Gold holds a 2.0 per cent NSR royalty on the Mariana Lithium Project.
Both TNR Gold and LMA have acknowledged LMA’s responsibility to pay the 2 per cent NSR royalty on the commencement of commercial production at the Mariana project. LMA has assumed the right to repurchase 50 per cent of the NSR royalty (that is 1 per cent).
TNR sold the portion of the NSR royalty, which is not subject to any buy-back rights of LMA.
The closing of the sale with LRC is subject to the parties filing certain notices in the Salta Mining Court in Argentina.
LRC continues to pursue the Salta Registrations, which are not yet complete.
LRC has requested that TNR agree to extend the closing date to February 1, 2023.
Kirill Klip, TNR’s Chief Executive Officer, commented, “By monetizing part of our royalty holdings, we are providing an important benchmark for valuations of assets in our royalty portfolio and generating very significant capital while selling to LRC only a portion of our royalty holding on the Mariana Lithium Project.”
“This strategic transaction with LRC allows us to significantly improve our working capital position and strengthen our balance sheet,” added Klip.
The Mariana Project began construction last June and will start producing in 2024.
There will be around 20 thousand tons per year of lithium chloride.
We believe the royalty holdings are undervalued, and their appropriate values are not reflected in its share price.
Founded in 2018, Lithium Royalty is a North American royalty corporation focused on investing in high-quality, low-cost projects with an emphasis on lithium.
TNR Gold Corp. is working to become a green energy metals royalty and gold company.
Its portfolio combines assets with exposure to multiple aspects of the mining cycle.
TNR Gold (TNR) is trading at C$0.035 at 3:30 pm on November 22.
