Triple Flag Precious Metals Corp. (with its subsidiaries,
“Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) is pleased
to announce that it has entered into a definitive agreement to
acquire an existing 0.5% gross overriding revenue (“GOR”) royalty
on the Tres Quebradas construction-stage lithium project from
Lithium Royalty Corp. (“LRC”) for total cash consideration of US$28
million. Tres Quebradas, located in Catamarca province, Argentina,
is 100%-owned and operated by Zijin Mining Group Co., Ltd.
(“Zijin”) through its subsidiary Liex SA. Unless otherwise noted,
all dollar amounts in this news release are expressed in US
dollars.
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Figure 1: Salar at Tres Quebradas (Photo:
Business Wire)
“We are pleased to announce this royalty acquisition that adds
near-term revenue from a high-grade lithium brine asset with a
multi-decade reserve life, attractive cost profile, expansion
optionality and significant resource upside,” commented Sheldon
Vanderkooy, CEO. “While Triple Flag’s core focus remains on
precious metals opportunities, the acquisition of the Tres
Quebradas royalty is a unique, counter-cyclical opportunity to
deploy capital and gain exposure to a large, well-capitalized
mining project with a long life and significant upside potential at
attractive returns. We enjoyed working with the LRC management team
on this bilateral, mutually beneficial transaction that highlights
embedded value within their portfolio and adds a high-quality asset
to our portfolio. We are also pleased to grow our relationship with
Zijin as an operating partner, a leading precious, base, and
critical metals producer.”
Key Terms and Transaction Highlights
- A 0.5% GOR royalty that covers all mineral properties
comprising the Tres Quebradas lithium project.
- Tres Quebradas is fully permitted. Zijin acquired Tres
Quebradas in 2022 for $770 million and has since commenced
construction for Phase 1 of the project and has invested more than
$600 million into its development. Nameplate annual production
capacity is 20,000 tonnes of battery grade lithium carbonate
(“LCE”) under Phase 1.
- Based on current disclosures from Zijin, royalty revenue from
Phase 1 is expected to commence in the second half of 2025. Triple
Flag expects a subsequent ramp-up over a three-year period to a
steady-state of approximately 1,000 gold equivalent ounces per
year.
- Zijin is contemplating a potential expansion of nameplate
annual production capacity to a range of 40,000 to 60,000 tonnes of
lithium carbonate (“Phase 2”).
- High-grade, multi-decade reserve life, with significant
resource upside.
- Proven and Probable Reserves of 1.67 million tonnes LCE,
Measured and Indicated Resources of 5.37 million tonnes LCE
(inclusive) and Inferred Resources of 2.26 million tonnes
LCE1.
- Closing of the transaction is expected in the first quarter of
2025.
Asset Background
Tres Quebradas is a lithium brine asset located in Catamarca,
Argentina and was discovered in 2015 by the founders of Neo Lithium
Corp. (“Neo Lithium”). Zijin entered the lithium market in 2021 and
acquired its 100%-interest in Tres Quebradas in early 2022 through
its acquisition of Neo Lithium for $770 million.
Tres Quebradas is a scalable, high-grade asset with low
impurities, designed as a conventional brine with evaporation and
precipitation. Tres Quebradas will produce battery grade lithium
carbonate from a process plant in Fiambalá, Argentina.
Brine operations are generally the lowest cost lithium assets on
the cost curve. The lithium industry in Argentina is focused within
the three provinces of Catamarca, Salta and Jujuy, placing the
nation fourth in worldwide production and second in mineral
resource endowment. In October 2024, Rio Tinto announced the $6.7
billion acquisition of Arcadium Lithium plc (“Arcadium”),
positioning the company as the world’s third largest lithium
producer. Arcadium’s core assets are brine operations in
Argentina.
About Triple Flag Precious Metals
Triple Flag is a precious metals streaming and royalty company.
We offer financing solutions to the metals and mining industry with
exposure primarily to gold and silver in the Americas and
Australia, with a total of 235 assets, including 16 streams and 219
royalties. These investments are tied to mining assets at various
stages of the mine life cycle, including 30 producing mines and 205
development and exploration stage projects, and other assets.
Triple Flag is listed on the Toronto Stock Exchange and New York
Stock Exchange, under the ticker “TFPM”.
Forward-Looking Information
This news release contains “forward-looking information” within
the meaning of applicable Canadian securities laws and
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995,
respectively (collectively referred to herein as “forward-looking
information”). Forward-looking information may be identified by the
use of forward-looking terminology such as “plans”, “targets”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“outlook”, “forecasts”, “projection”, “prospects”, “strategy”,
“intends”, “anticipates”, “believes”, or variations of such words
and phrases or terminology which states that certain actions,
events or results “may”, “could”, “would”, “might”, “will”, “will
be taken”, “occur” or “be achieved”. Forward-looking information in
this news release include, but are not limited to, statements with
respect to the closing of the acquisition of the GOR royalty, and
all related matters thereto, developments in respect of the
operations at the Tres Quebradas lithium project and the expected
payments under the GOR royalty. In addition, any statements that
refer to expectations, intentions, projections or other
characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent
management’s expectations, estimates and projections regarding
possible future events or circumstances.
The forward-looking information included in this news release is
based on our opinions, estimates and assumptions considering our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. The forward-looking information contained in this
news release is also based upon a number of assumptions, including
the ongoing operation of the properties in which we hold a stream
or royalty interest by the owners or operators of such properties
in a manner consistent with past practice; the accuracy of public
statements and disclosures made by the owners or operators of such
underlying properties; and the accuracy of publicly disclosed
expectations for the development of underlying properties that are
not yet in production. These assumptions include, but are not
limited to, the following: assumptions in respect of current and
future market conditions and the execution of our business
strategies, that operations, or ramp-up where applicable, at
properties in which we hold a royalty, stream or other interest,
continue without further interruption through the period, and the
absence of any other factors that could cause actions, events or
results to differ from those anticipated, estimated, intended or
implied. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Forward-looking information is also subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance, or achievements to
be materially different from those expressed or implied by such
forward-looking information. Such risks, uncertainties and other
factors include, but are not limited to, those set forth under the
caption “Risk Factors” in our most recently filed annual
information form which is available on SEDAR+ at www.sedarplus.ca
and on EDGAR at www.sec.gov. For clarity, mineral resources that
are not mineral reserves do not have demonstrated economic
viability and inferred resources are considered too geologically
speculative for the application of economic considerations.
Although we have attempted to identify important risk factors
that could cause actual results or future events to differ
materially from those contained in forward-looking information,
there may be other risk factors not presently known to us or that
we presently believe are not material that could also cause actual
results or future events to differ materially from those expressed
in such forward-looking information. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information, which speaks only as of
the date made. The forward-looking information contained in this
news release represents our expectations as of the date of this
news release and is subject to change after such date. We disclaim
any intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. All the forward-looking information contained in
this news release is expressly qualified by the foregoing
cautionary statements.
Cautionary Statement to U.S. Investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Triple Flag has been
prepared in accordance with requirements and standards under
Canadian securities laws, which differ from the requirements of the
U.S. Securities and Exchange Commission (“SEC”) under subpart 1300
of Regulation S-K (“S-K 1300”). Because the Company is eligible for
the Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, Triple Flag is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. Accordingly, certain information contained in this
press release may not be comparable to similar information made
public by US companies subject to reporting and disclosure
requirements of the SEC.
Technical and Third-Party Information
Triple Flag does not own, develop or mine the underlying
properties on which it holds stream or royalty interests. As a
royalty or stream holder, Triple Flag has limited, if any, access
to properties included in its asset portfolio. As a result, Triple
Flag is dependent on the owners or operators of the properties and
their qualified persons to provide information to Triple Flag and
on publicly available information to prepare disclosure pertaining
to properties and operations on the properties on which Triple Flag
holds stream, royalty, or other similar interests. Triple Flag
generally has limited or no ability to independently verify such
information. Although Triple Flag does not believe that such
information is inaccurate or incomplete in any material respect,
there can be no assurance that such third-party information is
complete or accurate.
Qualified Person
James Lill, Director, Mining for Triple Flag Precious Metals and
a “qualified person” under NI 43-101 has reviewed and approved the
written scientific and technical disclosures contained in this
press release.
1 Mineral Reserves and Mineral Resources have an effective date
of October 26, 2021, as contained in the “Tres Quebradas Technical
Report”, which was prepared for Neo Lithium and filed under Neo
Lithium’s SEDAR+ profile on November 25, 2021, with an effective
date of October 26, 2021. This information is also contained in the
Annual Information Form of Lithium Royalty Corp. dated March 27,
2024 for the year ended December 31, 2023. Brine produced from
outside the Measured and Indicated Resource is included in volume,
but excluded from the Mineral Reserve. Based on Measured and
Indicated Resource of 5,369 kt of LCE at 400/mg/L cut-off. Resource
recovered is 31%. Mineral Resources, which are not Mineral Reserves
do not have demonstrated economic viability. Mineral Resources
reported are inclusive of those portions of the Mineral Resource
that have been converted to Mineral Reserves. All Mineral Reserves
and Mineral Resources are reported on a 100% attributable basis to
Zijin.
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version on businesswire.com: https://www.businesswire.com/news/home/20241219420851/en/
Investor Relations: David Lee Vice President, Investor
Relations Tel: +1 (416) 304-9770 Email: ir@tripleflagpm.com
Media: Gordon Poole, Camarco Tel: +44 (0) 7730 567 938
Email: tripleflag@camarco.co.uk
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