Lithium Royalty Corp. Acquires Royalty Interest on the James Bay Lithium Project in Québec
https://www.newswire.ca/news-r…-in-quebec-815773834.html
James Bay Lithium Project Highlights
- Located in northern Québec, approximately 130km east of James Bay and the Cree Nation community of Eastmain.
- Allkem released a NI 43-101-compliant feasibility study ("FS") on December 16, 2021. The following are the key highlights:
- ~19 year life of mine.
- Average annual production of 321 kt spodumene concentrate.
- Projected capital expenditure is USD$286 million.
- Construction to begin in 2023, with commissioning in the first half of 2024.
- Run-rate nameplate production expected in 2026.
- December 2021 Mineral Resource Estimate contained probable mineral reserve of 37.2m tonnes at a grade of 1.3% Li2O.
- An updated resource for the James Bay Project is expected by mid-2023.
- Project will source a significant amount of total energy requirements from local sustainable hydro-electric generation.
- Allkem is ready to start construction following a positive approval ruling from the Joint Assessment Committee (Cree Nation and Provincial Government). The company noted that the public consultation period ended on February 27th.
Lithium Royalty Corp. James Bay Royalty Highlights
- 1.5% net smelter revenue royalty, covering a portion of the mineral resources at James Bay Lithium Project.
- One-third of the royalty is subject to a buy-back right for USD$365,000
- Net of the buyback the acquired royalty is expected to produce approximately USD$3,000,000 of annual royalty cash flows to Lithium Royalty Corp at current market prices for Spodumene Concentrate when mining of the claims occurs.
- LRC paid an all cash consideration of USD$1,800,000 to the third party vendor.
- This acquisition is accretive to Net Asset Value per share using LRC's conservative underwriting assumptions.
- Allkem has recently completed 19,255m of resource extension drilling, which should directly benefit the Royalty Area.
- Allkem's prior disclosures highlight that mineralization is open to the north and to the east presenting attractive optionality given the Royalty Area covers the eastern areas of the project.