TNR Gold Considers Partial Mariana Lithium Royalty Sale
Vancouver, British Columbia--(Newsfile Corp. - April 6, 2022) - TNR Gold Corp. (TSXV: TNR) ("TNR", "TNR Gold" or the "Company") wishes to announce that it is considering strategic options for the sale of a portion of its NSR royalty involving the Mariana Lithium Project.
On October 21, 2021, TNR Gold announced that, further to the Company's news release dated September 27, 2021, International Lithium Corp. ("ILC") had announced the completion of the sale to Ganfeng Lithium of ILC's remaining 8.58% stake in Litio Minera Argentina S.A., the owner of the Mariana Lithium Project in Salta, Argentina. The deal included confirmation that Ganfeng's subsidiary, Litio Minera Argentina, would assume all rights or obligations that ILC had in respect of the Mariana property. TNR Gold holds a 2.0% net smelter returns ("NSR") royalty on the Mariana Lithium Project.
ILC's news release issued on October 20, 2021 stated, "The Company announced on September 21, 2021 that it had contracted to sell its remaining 8.58% stake in Litio Minera Argentina S.A. and the Company's remaining rights and obligations related to the Mariana project to ILC's partner Ganfeng Lithium. The deal included confirmation that Litio Minera Argentina would assume all rights or obligations that the Company had in respect of the Mariana property. On October 4, 2021 the Company announced that it expected this sale to complete in mid-October. Completion has now taken place."
TNR wishes to work constructively and co-operatively with Litio Minera Argentina, as it relates to TNR's possible sale of a portion of the NSR royalty not subject to any buy-back rights of Litio Minera Argentina. Litio Minera Argentina has the right to purchase from TNR 1.0% of the NSR royalty for aggregate payment of $1,000,000 at any time within 240 days of "Commencement of Commercial Production" as defined in the underlying agreement.
Kirill Klip, TNR's Chief Executive Officer commented, "We have seen Ganfeng Lithium consolidate 100% of the Mariana Lithium Project and both TNR Gold and Ganfeng Lithium's subsidiary Litio Minera Argentina Corp. ("LMA") have acknowledged LMA's responsibility to pay the 2% NSR royalty on the commencement of Commercial Production at the Mariana Lithium Project, and LMA has assumed the right to the repurchase of 50% of the NSR royalty (that is 1%). Ganfeng has successfully advanced Mariana Lithium to the construction stage. This is after a 55% increase in the measured and indicated resource estimate from the previously announced 2020 resource estimate at Mariana. We extend our congratulations to Ganfeng and salute the people of Argentina on the successful approval of the Environmental Impact Report by the Salta regional government in Argentina and approvals for the construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium chloride.
"We are very pleased to see that this new plan represents a design capacity of 20,000 tonnes lithium Chloride (LiCl) over the previously planned annual lithium production rate of 10,000 tonne-per-year lithium carbonate equivalent (LCE) presented in the Mariana Project preliminary economic assessment ("PEA"), announced in our news release of January 28, 2019. It was the first PEA on the project and provided a potential value for the total NSR royalty from Mariana's life of mine cashflow, which has now been significantly increased. We welcome the news from the Salta regional government, following its discussions with Ganfeng, that the likely project expenditure to bring the Mariana Project to full production is approximately US$600 million.
"We believe that our royalty holdings are undervalued, and their appropriate values are not reflected in the Company's share price. We have received significant industry interest in our assets and the Company is working on potential new strategic partnerships to provide benchmarks for the market valuations of our royalty holdings. Such strategic transactions may potentially allow us to substantially improve our working capital position.
"TNR does not have to contribute any capital for the development of the Mariana Project. The 2.0% NSR royalty on the entire Mariana Project with Ganfeng Lithium is an important part of TNR's portfolio, (TNR holds a 0.2% NSR on behalf of a shareholder). Lithium Minera Argentina retains the buyback right on 1.0% of the NSR royalty as described herein. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
The ILC press releases and website material appear to be prepared by Qualified Persons (as that term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects), and the procedures, methodology and key assumptions disclosed therein are those adopted and consistently applied in the mining industry, but no Qualified Person engaged by TNR has done sufficient work to analyze, interpret, classify or verify ILC's information to determine the current mineral resource or other information referred to in its press releases. Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Over the past twenty-six years, TNR, through its lead generator business model, has been successful in generating high-quality exploration projects around the globe. With the Company's expertise, resources and industry network, it identified the potential of the Los Azules Copper Project in Argentina and now holds a 0.4% NSR Royalty on the project, which is being developed by McEwen Mining Inc, (TNR holds a 0.04% NSR on behalf of a shareholder).
In 2009, TNR founded International Lithium Corp. ("ILC"), a green energy metals company that was made public through the spin-out of TNR's energy metals portfolio in 2011. ILC held interests in lithium projects in Argentina, Ireland and Canada.
TNR retains a 2.0% NSR Royalty on the Mariana Lithium Project in Argentina with Ganfeng Lithium, (TNR holds a 0.2% NSR on behalf of a shareholder). Ganfeng's subsidiary, Litio Minera Argentina, has a right to repurchase 1.0% of the NSR Royalty on the Mariana Project, of which 0.9% relates to the Company's NSR Royalty interest. The Company would receive $900,000 on the completion of the repurchase. The project is currently being advanced by Ganfeng Lithium International Co. Ltd.
TNR also holds a 7% NPR holding on the Batidero I and II properties with Josemaria Resources Inc. Josemaria Resources is part of the Lundin Group, a portfolio of companies producing a variety of commodities in over 20 countries worldwide.
TNR provides significant exposure to gold through its 90% holding in the Shotgun Gold porphyry project in Alaska. The project is located in Southwestern Alaska near the Donlin Gold project, which is being developed by Barrick Gold and Novagold Resources Inc.
The Company's strategy with Shotgun Gold Project is to attract a joint venture partnership with one of the gold major mining companies. The Company is actively introducing the project to interested parties.
At its core, TNR provides significant exposure to gold, copper, silver and lithium through its holdings in Alaska (the Shotgun Gold porphyry project) and Argentina (the Los Azules Copper and the Mariana Lithium projects) and is committed to the continued generation of in-demand projects, while diversifying its markets and building shareholder value.
On behalf of the Board of Directors,
Kirill Klip
Executive Chairman
For further information concerning this news release please contact +1 604-229-8129
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Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "will", "could" and other similar words, or statements that certain events or conditions "may" or "could" occur, although not all forward-looking statements contain these identifying words. Specifically, forward-looking statements in this news release include, but are not limited to, statements made in relation to: TNR's corporate objectives, changes in share capital, market conditions for energy commodities, the results of McEwen Mining's, Ganfeng Lithium's, Josemaria Resources' and Lundin Mining's PEAs, and improvements in the financial performance of the Company. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled "Risks" and "Forward-Looking Statements" in the Company's interim and annual Management's Discussion and Analysis which are available under the Company's profile on www.sedar.com. While management believes that the assumptions made and reflected in this news release are reasonable, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. In particular, there can be no assurance that: TNR will be able to repay its loans or complete any further royalty acquisitions or sales; debt or other financing will be available to TNR; or that TNR will be able to achieve any of its corporate objectives. TNR relies on the confirmation of its ownership for mining claims from the appropriate government agencies when paying rental payments for such mining claims requested by these agencies. There could be a risk in the future of the changing internal policies of such government agencies or risk related to the third parties challenging in the future the ownership of such mining claims. Given these uncertainties, readers are cautioned that forward-looking statements included herein are not guarantees of future performance, and such forward-looking statements should not be unduly relied on.
In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting TNR and its royalty partners, McEwen Mining Inc., Ganfeng Lithium, Josemaria Resources and Lundin Mining will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity and regulations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.
Forward-looking information herein and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
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