There’s more consolidation in the royalty space in store. Altius Minerals (TSX: ALS) has entered into a definitive agreement to acquire Lithium Royalty Corp (TSX: LIRC).
The transaction will see Lithium Royalty acquired at a valuation of $521 million, or $9.50 per share. The figure represents a premium of 29.6% relative to Friday’s closing price.
Under the terms of the transaction, shareholders of Lithium Royalty can elect to receive $9.50 in cash or 0.24 of a common share of Altius for each share held, subject to proration with the cash portion to equal no more than one third of the aggregate consideration, or $173 million.
Altius expects to issue up to 11.5 million shares in connection with the offering. Default consideration is set at $3.16 per share in cash and 0.16 of an Altius share.
The acquisition will see Altius acquire 37 new royalties, the majority of which are said to feature long to ultra-long implied resource lives. Four of those royalties are producing, of which all are ramping up production or expanding, while 12 royalties are on advanced stage projects with completed economic studies. Up to five projects are said to be planning on starting operations between 2026 and 2030.
Total royalty revenue is expected to ramp to $40 to $60 million by the end of the decade as per Altius.
The transaction is said to a “counter-cyclical” investment, which focuses on a potential deficit in the lithium space emerging in 2026, driving pricing higher for the metal.
“We believe that this transaction creates strong value for shareholders by adding a significant pipeline of operating, development and evaluation stage assets to the Base and Battery Metals component of our business. Altius was an early strategic investor and partner of LRC and participated in its asset selections and royalty structuring efforts,” commented Brian Dalton, CEO of Altius.
The transaction remains subject to shareholder, regulatory and court approvals. A break fee of $23.4 million is also in play.
The transaction is expected to close in the first quarter of 2026.
Altius Minerals last traded at $40.28 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
