News Summary
– On December 22, 2025, Lithium Royalty Corp. (LRC) announced a definitive arrangement agreement to be acquired by Altius Minerals Corporation for C$9.50 per share.
– The offer provides shareholders a 29.6% premium to the December 19, 2025, closing price and a 41.4% premium to the 30-day VWAP.
– Major shareholders representing 84.7% of the company, including Waratah and Riverstone, have signed support agreements to vote in favor of the deal.
– Simultaneously, LRC entered an agreement to acquire a 1.5% trailing product sales fee (TPSF) royalty on the Goulamina Lithium Project in Mali from Leo Lithium for AUD $40 million.
– The Goulamina royalty is expected to generate approximately USD $8.9 million in annual cash flow at spot prices of $1,300/t.
– To fund the Goulamina acquisition, Altius is providing a USD $20 million bridge loan to LRC.
Material Impact
– The Altius acquisition is a defining event that provides a liquidity exit for minority shareholders at a substantial premium during a period of volatile lithium prices.
– The Goulamina acquisition is the first major producing-asset royalty added to the portfolio in 2025, providing immediate cash flow. This project is operated by Ganfeng Lithium, a world-class operator, which reduces operational risk, though it introduces Mali jurisdictional risk.
– These combined announcements suggest Altius is moving to capture the full upside of LRC’s maturing portfolio just as several flagship royalties (Tres Quebradas, Mariana, and Horse Creek) have reached production in late 2025.
– The 84.7% support from major insiders makes the acquisition highly likely to close, effectively capping the stock price near the C$9.50 level.
Catalysts
– Shareholder meeting results: Expected in early 2026. The 66.67% approval threshold is a formality given the existing support agreements.
– Court and regulatory approvals: Finalizing the plan of arrangement for the Altius deal.
– Goulamina payment tranches: First AUD $20M payment in late 2025/early 2026 and the second AUD $20M by early February 2026.
– Production ramp-up at Tres Quebradas (Zijin) and Mariana (Ganfeng) which are scheduled to provide more material revenue in 1H 2026.
Materiality Conclusion
– The buyout offer is the most material event in the company’s history as a public entity. It validates management’s strategy of acquiring royalties during cyclical lows and provides a 30% premium. While it removes the potential for outsized “moonshot” gains if lithium prices triple, it provides a safe, high-value exit for risk-averse investors in a capital-intensive sector.
