07:48 AM EDT, 03/11/2024 (MT Newswires) -- Lithium Royalty Corp. ( LITRF ) , which lost 2.7% last Friday, said Monday that it has agreed to buy a newly created 1.5% gross overriding revenue royalty on the land claims held by M4E Lithium Ltda., a private lithium explorer focused on Brazilian hard rock lithium deposits.

Lithium Royalty ( LITRF ) is buying the GOR royalty for consideration of $1.5 million at closing and $2 million upon achieving 10 million tons of measured and indicated resources by Dec. 31, 2025. Lithium Royalty ( LITRF ) funded the royalty acquisition entirely from cash on hand.

M4E holds one of the largest lithium exploration packages in Brazil, covering more than 91,000 hectares across the Lithium Valley in Minas Gerais, Borborema, Ceara, and Tocantins region.

M4E aims to continue drilling activities by the end of the second quarter of 2024, with a plan to drill about 15,000 meters this year on its three key targets that have shown confirmed spodumene.

Also, M4E will continue mapping additional early-stage targets with more than 100 pegmatites initially mapped in its area, to build a robust pipeline of potential lithium deposits. Depending on drill results, M4E expects to announce a preliminary mineral resource by mid-2025.