Lithium Royalty Corp Acquires Royalty on the Mia Lithium Property in Québec.
Lithium Royalty Corp. (TSX: LIRC) (“LRC”) announced today that it has entered into an agreement to acquire a pre-existing 1.0% Net Smelter Return (NSR) royalty on the Mia lithium property in Québec, Canada (the “Mia Lithium Project”). The project is 100%-owned by Q2 Metals Corp. (TSX-V:QTWO). LRC is acquiring the royalty from the seller in consideration for issuing 76,000 common shares of LIRC.
Ernie Ortiz, President and CEO of Lithium Royalty Corp. commented:
LRC is excited to acquire a royalty on one of the most exciting exploration projects in Québec.
“The technical prowess of the Q2 Metals team in combination with the geological potential of the Mia Lithium Project, are powerful ingredients for an important discovery on the property. LRC’s investment is emblematic of our continued support for projects in Québec and marks our 10th royalty in the province.”
Investment Highlights
Confirmed Spodumene Mineralization Along World Class Exploration Trend: The Mia Lithium Project has had confirmed spodumene bearing outcrops since 1957. Since Q2 Metals agreed to acquire the project in November 2022, Q2 has conducted several works programs that mapped 192 individual pegmatite outcrops along the exploration trend. Q2 has identified a total of 9 separate spodumene pegmatite zones within the Mia exploration trend which currently stands at 9.7 km, one of the longest trends in the world for lithium-bearing pegmatites. Q2 has collected 219 rock samples since re-mobilization in August, which are being analyzed via SGS Canada. The company has commenced its inaugural drill program, with two active drill rigs on site focused on drilling the confirmed spodumene pegmatite outcrops, presenting the potential for additional news flow and greater understanding of the property in the near future. Sampling work conducted on the property has returned lithium oxide values of 2.73%, 2.05%, 2.01%, and 1.57%.
Experienced Exploration Team: The Q2 Metals team has assembled a leading set of individuals with a strong pedigree in the lithium sector, particularly in the Québec spodumene industry. Mr. Neil McCallum is a professional geologist with over 18 years of experience in North America. He is a Director and Vice President of Exploration at Q2 Metals. Mr. McCallum identified and staked the Corvette property in 2016 for 92 Resources (a predecessor to Patriot Battery Metals). He also holds experience as a Principal Geologist for Dahrouge Consulting, which is one of the leading mining and mineral exploration groups in Canada having advised MetalsTech (the predecessor to Winsome Resources) on the Cancet and Adina lithium projects, as well as other leading properties.
Favourable Infrastructure: The property is situated approximately 10 km from the year-round Chemin de Wemindji highway, and approximately 35 km from the Billy-Diamond highway. Alongside the highway, there are power lines linked into the extensive hydropower production of over 8.7 gigawatts (GW) of capacity generated by the four stations within the La Grande complex.
Québec Emerging Hub: Québec is becoming a significant hub for battery manufacturing, with significant investments spanning the entire electric vehicle supply chain. Companies from around the world are investing into various aspects of the industry, from mining and processing critical minerals to battery production. For instance, SK On and Ford are planning to invest C$1.2 billion in the construction of a cathode manufacturing facility in Bécancour, Québec, while GM and POSCO have formed a joint venture with a more than C$600 million investment currently underway. Additionally, BASF and Vale have acquired substantial land holdings in the Bécancour industrial park, and Northvolt has recently established a 170-hectare, $7 billion, 60 GWh-capacity site for battery cell production in the region. Québec’s unique advantages, including abundant clean energy, robust infrastructure, a well-established manufacturing workforce, and access to local critical mineral resources, have positioned the province as a key player in the battery manufacturing sector. For a recent white paper published by LRC on Québec’s importance to lithium, click here.
Transaction Details
LRC to acquire a 1.0% NSR royalty on the Mia Lithium Property in consideration for 76,000 common shares of LRC. The acquisition is subject to customary closing conditions, including approval of the Toronto Stock Exchange, and is expected to close in November 2023.
About Lithium Royalty Corp.
LRC is a lithium-focused royalty company with a globally diversified portfolio of 34 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.
READ the latest Batteries News shaping the battery market
Lithium Royalty Corp Acquires Royalty on the Mia Lithium Property in Québec. source
