11:54 AM EDT, 03/20/2025 (MT Newswires) -- (Adds comment and updates shares.)

Lithium Royalty ( LITRF ) late Wednesday said it completed the partial sale of its Tres Quebradas royalty to Triple Flag Precious Metals ( TFPM ) for US$28 million with proceeds slated to be used to acquire additional royalties, share repurchases and for general corporate purposes.

Lithium Royalty ( LITRF ) originally acquired a 1% royalty on the Tres Quebradas lithium project in Argentina in July, 2018, for US$14 million. The company then acquired a further 0.5% royalty interest for US$27.5 million in July, 2023.

"This transaction allows LRC to rebalance its portfolio, replenish its balance sheet, and sell only a portion of a royalty for a substantial premium over the value embedded in our share price," said Lithium Royalty ( LITRF ) President and Chief Executive Ernie Ortiz.

National Bank of Canada reiterated its outperform rating on Lithium Royalty ( LITRF ) shares while cutting its price target to $7.00 from $7.50 following the sale.

The bank said the lower price target came after changing its estimates for Lithium Royalty ( LITRF ) following the filing of its financial statements for the fourth quarter of 2024, which were fairly in line with the bank's estimates.

Lithium Royalty ( LITRF ) shares were last seen down $0.26 to $3.99 on the Toronto Stock Exchange.

Price: 4.20, Change: -0.05, Percent Change: -1.18