Lithium Royalty Corp. (TSX: LIRC) (“LRC”) is pleased to announce that Atlas Lithium Corporation (“Atlas”) disclosed today that Atlas has fully funded Phase I of its lithium project in Brazil’s Lithium Valley, with first production of Phase I expected to start in Q4 2024. LRC invested US$20 million in Atlas in May 2023, in exchange for a 3.0% gross overriding revenue royalty (GOR). At the time, Atlas had only contemplated Phase I production of 150,000tpa of spodumene concentrate, but has since expanded its production plans to aggregate production of 300,000tpa once Phase II of its project is fully operational.
“This is a seminal milestone for Atlas Lithium, as it raised US$50 million from leading lithium converters. Despite the recent lithium market volatility, strategic interest for quality lithium supply remains robust and this further validates LRC’s focus on low-cost assets that can thrive irrespective of market conditions. This is another welcome development for the Brazilian lithium market following LRC’s first receipt of payments from its royalty with Sigma Lithium in 3Q23,” said Ernie Ortiz, President and CEO of Lithium Royalty Corp.
Atlas Highlights
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.
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including statements with regard to the potential expected from the royalty acquired from Atlas Lithium Corporation (“Atlas”). 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 Atlas as the owner, developer and operator of any lithium project based on the mining rights underlying the royalty acquired by LRC, including with respect to mineral resources, mineral reserves, construction timelines, production estimates and other related matters; the economic viability of Atlas’ lithium project; that Atlas’ lithium 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 Atlas’ lithium 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. 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.
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Jonida Zaganjori
Investor Relations
(647) 792-1100
[email protected]