TNR Gold’s stock surged as much as 27% to 7 cents a share in Toronto, while Lithium Royalty gained as much as 4.6%.
Lithium Royalty’s move is part of a rapid expansion since the Toronto-based firm went public in March. Buying Vancouver-based TNR Gold would give it ownership of a royalty on an Argentine lithium project operated by China’s Ganfeng Lithium Co.
Royalty and streaming firms have taken on greater roles in project financing as mine builders seek alternative sources of capital for expensive projects. The companies mostly pay cash to miners in exchange for a cut of future revenue on metals output at a discounted price.
(By Jacob Lorinc)