TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) said it has entered into a royalty purchase agreement with an Ontario limited partnership affiliated with Lithium Royalty Corp (LRC) for the sale of a portion of its net smelter returns (NSR) royalty involving the Mariana lithium project.
TNR has sold LRC a 0.5% NSR royalty for US$9,000,000, including a 0.05% NSR royalty sold by TNR on behalf of its shareholder. This represents one-quarter of the NSR royalty held by TNR.
The company also said that International Lithium Corp (TSX-V:ILC) (ILC) has completed the sale to Ganfeng Lithium Netherlands Co BV ‘s of ILC's remaining 8.58% stake in Litio Minera Argentina SA, the owner of the Mariana Lithium Project in Salta, Argentina, where TNR holds a 2% NSR royalty.
READ: TNR Gold provides update on its NSR royalty at McEwen Mining-owned Los Azules copper project
TNR CEO Kirill Klip said the company was pleased to have achieved this major milestone, which he said was further validation of TNR’s business model.
“By monetizing part of our royalty holdings, we are providing a very 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,” Klip said.
“This strategic transaction with LRC allows us to significantly improve our working capital position and strengthen our balance sheet.”
Klip noted that the parties expected the transaction to close within 60 days. “The company has received an initial advance of US$350,000 from LRC under the terms of the royalty purchase agreement,” he said.
Further details of the royalty purchase agreement can be found here.
Based in Vancouver, TNR is working to become a green energy metals royalty and gold company.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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