TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) is optimistic about its future revenue prospects following an update from Ganfeng Lithium regarding the progress of the Mariana lithium project in Argentina.
Ganfeng Lithium, in its 2023 annual report, stated that construction on the Mariana project commenced in June 2022, with brine infusion into the salt fields starting by the end of the same year.
The project, situated in Salta Province, Argentina, is on track for its scheduled commercial production by the end of 2024. Ganfeng Lithium aims to produce an estimated 20,000 tons per year of lithium chloride from the Mariana Project.
Kirill Klip, Executive Chairman of TNR Gold, expressed enthusiasm about the developments, stating: "We are building the green energy metals royalty and gold company. Our business model provides a unique entry point in the creation of supply chains for critical materials like energy metals that are powering the energy ‘rEVolution’, and the gold industry that is providing a hedge for this stage of the economic cycle."
TNR Gold holds a 1.5% net smelter return (NSR) royalty on the Mariana lithium project, with a 0.15% NSR royalty held on behalf of a shareholder.
Klip highlighted the significance of their portfolio, emphasizing exposure to various stages of the mining cycle and partnerships with industry leaders such as Ganfeng Lithium.
"We are very pleased that the Mariana Lithium Project is progressing smoothly towards commercial production scheduled for 2024," Klip added. "We are looking forward to our first NSR royalty cash flow payments from the Mariana lithium project."
TNR Gold's business model allows it to benefit from projects like Mariana without contributing capital for development. Klip reiterated, "The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
With no debt and a recent repayment of investment loans, Klip also told shareholders that the company remains confident in its value proposition despite what it perceives as undervaluation in the market.
The ongoing normal course issuer bid enables the company to repurchase shares to enhance shareholder value.