Lithium Royalty Corp. Provides June 2023 Portfolio Company Updates
TORONTO–(BUSINESS WIRE)–#ESG–Lithium Royalty Corp. (TSX: LIRC) (“LRC”) is pleased to highlight the following updates for the projects underlying its royalty holdings.
Allkem Limited Reports 34% Increase to Mt Cattlin Mineral Reserve
On June 16, 2023, Allkem Limited announced an increase of its mineral reserve at the Mt Cattlin project to 7.8 million tonnes (Mt) at 1.20% lithium oxide (Li2O), at a cut-off grade of 0.4% Li2O. The increased mineral reserve extends the mine life at the Mt Cattlin project through to 2028, using only open pit mining methods. Allkem is evaluating underground mining operations at Mt Cattlin, as they see “significant opportunity in transitioning to an underground mine including the unlocking of greater ore body extension and prolonging the life of mine”. Allkem expects to release an underground feasibility study in Q1 2024.
LRC holds an A$1.5/t royalty on ore mined and treated at the Mt Cattlin lithium project in Australia.
The information above is derived from disclosure by Allkem that has not been independently verified by LRC.
Sigma Lithium Commences Production at the Grota do Cirilo Project and Releases Production Guidance of 130,000t for 2023
On June 14, 2023, Sigma Lithium provided updates on its Grota do Cirilo project. The company commenced production in April 2023 and announced that it is guiding to ramp up to Phase I nameplate production of 270,000 tonnes per annum (“tpa”) by August 2023 on a run-rate basis. Sigma Lithium confirmed that it had achieved pricing for its first spodumene concentrate sales of 9.0% of the lithium hydroxide index. The company also reiterated targets for future Phase II and Phase III nameplate production of 760,000 tpa. Sigma Lithium also confirmed plans to increase the mineral resources in the second half of 2023 through ongoing exploration work, with a 17,000-metre drill program in 2023.
LRC holds a 1.0% gross overriding revenue (“GOR”) royalty on Sigma Lithium’s Grota do Cirilo lithium project in Brazil. LRC expects to receive its first payments on its royalty in the second half of 2023, with the exact timing dependent on when Sigma completes its first sales.
The information above is derived from disclosure by Sigma Lithium that has not been independently verified by LRC.
Delta Lithium Announces Drilling Results at Yinnetharra and Secures A$46.4M investment from Idemitsu
On June 14, 2023, Delta Lithium reported drill results at the Yinnetharra lithium project that included 43 metres at 1.22% Li2O from 66 metres. Delta Lithium reported two pegmatites having strike lengths of 1.6km, with both ore bodies being open along strike and down plunge. David Flanagan, Executive Chairman of Delta Lithium, commented that “Yinnetharra has it all. It feels like we have hit the jackpot.” Delta Lithium has completed 47,501 metres of drilling at Yinnetharra in 2023.
Delta Lithium also announced the same day that it had secured a A$46.4 million investment from Idemitsu, to progress exploration and resource drilling at Yinnetharra and its other Western Australian projects. Idemitsu is a leading Japanese oil and gas/petrochemical producer with US$6 billion market capitalization. Steve Kovac, CEO of Idemitsu Australia, commented that Delta has “the most exciting pre-development lithium projects in Australia.”
LRC holds a 1.0% GOR royalty on the Yinnetharra project.
The information above is derived from disclosure by Delta Lithium and disclosure by Idemitsu that has not been independently verified by LRC.
Winsome Resources Reports Additional Drill Results at Adina; Expects Maiden Mineral Resource Announcement in 2023
On June 12, 2023, Winsome Resources announced the discovery of new lithium-bearing pegmatite dyke swarms from the Footwall Zone at the Adina lithium project in Québec. Winsome Resources also announced near-surface, high-grade lithium intersections at the Main Deposit, of 26.4 metres at 2.04% Li2O and 46.5 metres at 1.73% Li2O. Despite drilling interruptions from forest fires in Québec, Winsome Resources confirmed that it is on track to release a maiden mineral resource estimate at Adina later in 2023.
LRC holds a 4.0% GOR royalty and 2.0% NSR royalty on the Adina lithium project.
The information above is derived from disclosure by Winsome Resources that has not been independently verified by LRC.
Atlas Lithium Reports 103.4 metres of Continuous Lithium-Bearing Spodumene
On June 8, 2023, Atlas Lithium announced continuous intercepts of 103.4 metres of lithium-bearing spodumene, which represents one of the widest intercepts in the Brazil’s “Lithium Valley”. In May 2023, the company also reported an intersection of 95.2 metres at 1.47% Li2O. Atlas Lithium disclosed that it has completed 28,025 metres of a 40,000-metre drill campaign, with 8,284 metres drilled in May 2023 and announced a target to release its maiden mineral resource in Q3 2023.
LRC holds a 3.0% GOR royalty on the Das Neves lithium project in Brazil.
The information above is derived from disclosure by Atlas Lithium that has not been independently verified by LRC.
Sayona Completes A$200M Equity Raise to Support Québec Projects
On May 26, 2023, Sayona Mining Limited announced that it had raised A$200 million of equity capital to advance its key projects in Québec. Of the total capital raised, Sayona outlined that it intends to spend A$40 million on its Northern Hub properties in Québec, of which the Moblan lithium project is the key asset. Sayona announced that it is using these funds to expedite mine development studies, downstream lithium chemical assessment, and infrastructure planning. Sayona also highlighted its ongoing 60,000-metre drill campaign, which Sayona intends to further expand the size and grade of the project, with a Definitive Feasibility Study (“DFS”) expected to be published in October 2023.
LRC holds a 2.5% GOR royalty on the Moblan lithium project.
The information above is derived from by Sayona Mining that has not been independently verified by LRC.
Important Dates and Events
- June 20-21, 2023 – Lithium Royalty Corp. Participates at Fastmarkets 15th Lithium Supply and Battery Conference
- August 14, 2023 – Lithium Royalty Corp. Releases Q2 Results
- August 15, 2023 – Lithium Royalty Corp. Earnings Call
About Lithium Royalty Corp.
LRC is a lithium-focused royalty company with a globally diversified portfolio of 32 high-grade revenue royalties on mineral properties around the world that supply and are expected to supply raw materials to support the electrification of transportation and decarbonization of the global economy. Our portfolio is focused on high-grade and low-cost mineral projects that are primarily located in Australia, Canada, South America and the United States. LRC is a signatory to the Principles for Responsible Investment; the integration of ESG factors and sustainable mining are considerations in our investment analysis and royalty acquisitions.
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including statements with regard to mining and exploration activities expected by the operators of each of the Mt Cattlin project in Australia, the Grota do Cirilo project in Brazil, the Yinnetharra project in Australia, the Adina project in Québec, the Das Neves project in Brazil and the Moblan project in Québec. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described under “Risk Factors” in LRC’s Annual Information Form dated March 31, 2023, and in particular risks summarized under the “Risks Related to Mining Operations” heading.
Forward-looking information is based on management’s beliefs and assumptions and on information currently available to management. These assumptions include, but are not limited to, the following: estimates of commodity prices, particularly lithium-related products; the accuracy of public statements and disclosures made by Allkem Limited, Sigma Lithium, Delta Lithium, Winsome Resources, Atlas Lithium and Sayona Mining as the owners, developers and operators of the Mt Cattlin project, the Grota do Cirilo project, the Yinnetharra project, the Adina project, the Das Neves project and the Moblan project, respectively, including with respect to mineral resources, mineral reserves, construction timelines, production estimates and other related matters; the economic viability of each of the Mt Cattlin project, the Grota do Cirilo project, the Yinnetharra project, the Adina project, the Das Neves project and the Moblan project; that each of the Mt Cattlin project, the Grota do Cirilo project, the Yinnetharra project, the Adina project, the Das Neves project and the Moblan project will be developed, transitioned into production and successfully achieve production ramp up, in each case, in accordance with expectations; no adverse development relating to any of the Mt Cattlin project, the Grota do Cirilo project, the Yinnetharra project, the Adina project, the Das Neves project and the Moblan project; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.
Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, you are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain of the information included in this press release has been derived from public disclosure made by the operators of the lithium projects underlying royalties held by LRC, but that has not been independently verified by LRC. Investors are cautioned not to put undue reliance on that public disclosure, including on information derived from that public disclosure that is included in this press release.
Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Contacts
Contact Information for Inquiries:
Jonida Zaganjori
Investor Relations
(647) 792-1100
