Lithium Royalty Corp said it will be raising approximately C$150 million through an initial public offering (IPO) of its shares for the acquisition of royalties to expand its lithium-focus portfolio, in addition to repaying shareholder notes, paying contingent royalty obligations, and for other general corporate purposes.
Toronto-based Lithium Royalty has a portfolio of 29 royalties on mineral properties around the world, covering two operating mines and four mines in construction.
The company said in a statement on February 23 that the offering price is currently expected to be between C$16 and C$19, assuming no exercise of the underwriters' over-allotment option to purchase up to an additional 15% of the common shares sold pursuant to the offering.
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The IPO is being co-led by Canaccord Genuity Corp and Citigroup Global Markets Canada Inc, together with TD Securities Inc, Cormark Securities Inc, National Bank Financial Inc, BMO Capital Markets, Scotiabank, Raymond James Ltd, and Red Cloud Securities Inc as underwriters, it added.
The company said it has filed an amended and restated preliminary base PREP prospectus, amending and restating the preliminary base PREP prospectus dated February 21, 2023, which is still subject to completion or amendment.
There will not be any sale or any acceptance of an offer to buy the shares until a receipt for the final base PREP prospectus has been issued, Lithium Royalty said.
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