2023-04-17 12:08:26
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES NEWS WIRE SERVICES/
TORONTO / Apr 17, 2023 / Business Wire /
Lithium Royalty Corp. (TSX: LIRC) (“LRC”) is pleased to highlight the following updates for the projects underlying its royalty holdings.
Moblan Lithium Project Resource Expansion
Sayona Mining Limited (ASX: SYA) announced on April 17, 2023, a major resource expansion at the Moblan Lithium Project in Québec, Canada. The resource has grown from the previously disclosed 12.0 million tonnes at 1.4% Li2O Measured and Indicated Mineral Resource with a 0.3% cut-off grade at the time of LRC acquisition to 49.9 million tonnes at 1.2% Li2O Measured and Indicated Mineral Resource with a 0.25% cut-off grade today. Sayona highlighted the potential for higher production tonnage given the new resource.
LRC’s President and Chief Executive Officer Ernie Ortiz commented, “The mineral resource increase at Moblan cements Moblan Lithium Project’s position as one of North America’s largest single lithium resources in North America. Furthermore, it underscores LRC’s exposure to leading lithium mineral resources globally. Sayona’s aggressive drill and development program at Moblan underpins the substantial optionality to the LRC investor for no additional outlay on behalf of LRC. We look forward to the additional disclosure regarding the Pre-Feasibility Study and the Definitive Feasibility Study at Moblan, both of which Sayona expects to be published in 2023”.
Sayona aims to further enhance the size and grade of this mineral resource through additional drilling with 60,000 metres planned at Moblan. Sayona believes that mineralization may extend to the north, northeast, and at depth.
LRC holds a royalty on Sayona’s 60% interest in the Moblan Lithium Project, for 2.5% of gross revenues for the first one million tonnes of lithium ore per annum produced and 1.5% of gross revenue for any tonne of lithium ore per annum produced thereafter.
Sayona Mining Limited announced that it expects to release an updated Pre-Feasibility Study in May 2023 which may reflect updated production rates.
The disclosures above regarding the Moblan Lithium Project are based on, and the statements in the link below were prepared by and made by, Sayona. The disclosures by Sayona are not statements of LRC and have not been independently verified by LRC. Sayona is not subject to Canadian reporting requirements or obligations, and investors are cautioned not to put undue reliance on these statements. Sayona’s original announcement can be found here.
Sigma Lithium Initiates Production
Sigma Lithium announced on April 17, 2023, that it has successfully achieved first production of spodumene concentrate, transitioning itself from construction phase into production at the Grota do Cirilo Lithium Project in Minas Gerais, Brazil. Sigma disclosed that it is now turning its attention to ramping up to full production capacity, which Sigma expects to achieve by July 2023 for its Phase 1 project.
Sigma expects inaugural first shipment of approximately 15,000 tonnes of spodumene concentrate in May 2023.
LRC holds a 90% interest in a 1.0% NSR royalty over the Grota do Cirilo project.
The disclosures above regarding the Grota do Cirilo Lithium Project are based on, and the statements in the link below were prepared by and made by, Sigma Lithium. The disclosures by Sigma Lithium are not statements of LRC and have not been independently verified by LRC. Investors are cautioned not to put undue reliance on these statements by Sigma Lithium. Sigma Lithium’s original announcement can be found here.
Allkem Provides Mineral Resource Update at Mt. Cattlin
Allkem Limited updated its Mineral Resource at the Mt. Cattlin Lithium Project in Western Australia, Australia on April 17, 2023, to 11.5 million tonnes Measured and Indicated Mineral Resource at 1.3% Li2O with a 0.4% cut-off grade. Allkem commented that the contained metal increased by 4% despite depletion from production.
The updated mineral resource reflects higher lithium grades. Allkem notes that this supports an upcoming Reserve update and life of mine extension review. Allkem expects initial results for the reserve update by mid-2023.
LRC holds a royalty payable at a rate of A$1.50 per tonne of ore mined and processed from the Mt Cattlin mine.
The disclosures above regarding the Mt. Cattlin Lithium Project are based on, and the statements in the link below were prepared by and made by, Allkem Limited. The disclosures by Allkem Limited are not statements of LRC and have not been independently verified by LRC. Investors are cautioned not to put undue reliance on these statements by Allkem Limited. Allkem Limited’s original announcement can be found here.
LRC Conference Participation
LRC is pleased to participate in the following investor conferences in May:
- Citi Battery Metals Conference on May 9, 2023
- Canaccord Genuity Global Metals and Mining Conference on May 11-12, 2023
- National Bank Conference on May 25, 2023
About Lithium Royalty Corp.
LRC is a lithium-focused royalty company with a globally diversified portfolio of 30 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 important 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 production expected by the operators of the Moblan Lithium project, the Grota do Cirilo Project and the Mt. Cattlin Project. 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 Sayona Mining, Sigma Lithium and Allkem as the owners, developers and operators of the Moblan Lithium Project, the Grota do Cirilo Lithium Project and the Mt Cattlin Lithium 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 Moblan Lithium Project, the Grota do Cirilo Lithium Project and the Mt Cattlin Lithium Project; that the Moblan Lithium Project and the Grota do Cirilo 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 any of the Moblan Lithium Project, the Grota do Cirilo Lithium Project and the Mt Cattlin 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.