07:57 AM EST, 12/19/2024 (MT Newswires) -- Lithium Royalty ( LITRF ) said Thursday it is selling a 0.5% gross overriding revenue royalty over the Tres Quebradas lithium brine project in Catamarca, Argentina, to Triple Flag Precious Metals ( TFPM ) for US$28 million.

Lithium Royalty ( LITRF ) will continue to hold a net 0.9% royalty over the project.

Tres Quebradas is 100%-owned and operated by Zijin Mining Group. Based on current disclosures from Zijin, royalty revenue from Phase 1 is expected to start in the second half of next year. Triple Flag expects a ramp-up over a three-year period to a steady-state of 1,000 gold equivalent ounces annually.

Lithium Royalty ( LITRF ) said it will use part of the sale proceeds to repurchase shares and may consider a substantial issuer bid.

Triple Flag was last seen down US$0.49 to US$14.92 in U.S. pre-market trading.