Triple Flag to Acquire a Royalty on Tres Quebradas
Triple Flag to Acquire a Royalty on Tres
Quebradas
TORONTO--(BUSINESS WIRE)--December 19, 2024--Triple Flag Precious Metals Corp. (with
its subsidiaries, “Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) is pleased to
announce that it has entered into a definitive agreement to acquire an existing 0.5% gross
overriding revenue (“GOR”) royalty on the Tres Quebradas construction-stage lithium project
from Lithium Royalty Corp. (“LRC”) for total cash consideration of US$28 million. Tres
Quebradas, located in Catamarca province, Argentina, is 100%-owned and operated by Zijin
Mining Group Co., Ltd. (“Zijin”) through its subsidiary Liex SA. Unless otherwise noted, all
dollar amounts in this news release are expressed in US dollars.
“We are pleased to announce this royalty acquisition that adds near-term revenue from a high-
grade lithium brine asset with a multi-decade reserve life, attractive cost profile, expansion
optionality and significant resource upside,” commented Sheldon Vanderkooy, CEO. “While
Triple Flag’s core focus remains on precious metals opportunities, the acquisition of the Tres
Quebradas royalty is a unique, counter-cyclical opportunity to deploy capital and gain exposure
to a large, well-capitalized mining project with a long life and significant upside potential at
attractive returns. We enjoyed working with the LRC management team on this bilateral,
mutually beneficial transaction that highlights embedded value within their portfolio and adds a
high-quality asset to our portfolio. We are also pleased to grow our relationship with Zijin as an
operating partner, a leading precious, base, and critical metals producer.”
Key Terms and Transaction Highlights
A 0.5% GOR royalty that covers all mineral properties comprising the Tres Quebradas
lithium project.
Tres Quebradas is fully permitted. Zijin acquired Tres Quebradas in 2022 for $770
million and has since commenced construction for Phase 1 of the project and has invested
more than $600 million into its development. Nameplate annual production capacity is
20,000 tonnes of battery grade lithium carbonate (“LCE”) under Phase 1.
o Based on current disclosures from Zijin, royalty revenue from Phase 1 is expected
to commence in the second half of 2025. Triple Flag expects a subsequent ramp-
up over a three-year period to a steady-state of approximately 1,000 gold
equivalent ounces per year.
Zijin is contemplating a potential expansion of nameplate annual production capacity to a
range of 40,000 to 60,000 tonnes of lithium carbonate (“Phase 2”).
High-grade, multi-decade reserve life, with significant resource upside.
o Proven and Probable Reserves of 1.67 million tonnes LCE, Measured and
Indicated Resources of 5.37 million tonnes LCE (inclusive) and Inferred
Resources of 2.26 million tonnes LCE1.
Closing of the transaction is expected in the first quarter of 2025.
Asset Background
Tres Quebradas is a lithium brine asset located in Catamarca, Argentina and was discovered in
2015 by the founders of Neo Lithium Corp. (“Neo Lithium”). Zijin entered the lithium market in
2021 and acquired its 100%-interest in Tres Quebradas in early 2022 through its acquisition of
Neo Lithium for $770 million.
Tres Quebradas is a scalable, high-grade asset with low impurities, designed as a conventional
brine with evaporation and precipitation. Tres Quebradas will produce battery grade lithium
carbonate from a process plant in Fiambalá, Argentina.
Brine operations are generally the lowest cost lithium assets on the cost curve. The lithium
industry in Argentina is focused within the three provinces of Catamarca, Salta and Jujuy,
placing the nation fourth in worldwide production and second in mineral resource endowment. In
October 2024, Rio Tinto announced the $6.7 billion acquisition of Arcadium Lithium plc
(“Arcadium”), positioning the company as the world’s third largest lithium producer.
Arcadium’s core assets are brine operations in Argentina.
About Triple Flag Precious Metals
Triple Flag is a precious metals streaming and royalty company. We offer financing solutions to
the metals and mining industry with exposure primarily to gold and silver in the Americas and
Australia, with a total of 235 assets, including 16 streams and 219 royalties. These investments
are tied to mining assets at various stages of the mine life cycle, including 30 producing mines
and 205 development and exploration stage projects, and other assets. Triple Flag is listed on the
Toronto Stock Exchange and New York Stock Exchange, under the ticker “TFPM”.
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable
Canadian securities laws and “forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995, respectively (collectively referred to
herein as “forward-looking information”). Forward-looking information may be identified by the
use of forward-looking terminology such as “plans”, “targets”, “expects”, “is expected”,
“budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”,
“intends”, “anticipates”, “believes”, or variations of such words and phrases or terminology
which states that certain actions, events or results “may”, “could”, “would”, “might”, “will”,
“will be taken”, “occur” or “be achieved”. Forward-looking information in this news release
include, but are not limited to, statements with respect to the closing of the acquisition of the
GOR royalty, and all related matters thereto, developments in respect of the operations at the
Tres Quebradas lithium project and the expected payments under the GOR royalty. In addition,
any statements that refer to expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information. Statements containing
forward-looking information are not historical facts but instead represent management’s
expectations, estimates and projections regarding possible future events or circumstances.
The forward-looking information included in this news release is based on our opinions,
estimates and assumptions considering our experience and perception of historical trends, current
conditions and expected future developments, as well as other factors that we currently believe
are appropriate and reasonable in the circumstances. The forward-looking information contained
in this news release is also based upon a number of assumptions, including the ongoing operation
of the properties in which we hold a stream or royalty interest by the owners or operators of such
properties in a manner consistent with past practice; the accuracy of public statements and
disclosures made by the owners or operators of such underlying properties; and the accuracy of
publicly disclosed expectations for the development of underlying properties that are not yet in
production. These assumptions include, but are not limited to, the following: assumptions in
respect of current and future market conditions and the execution of our business strategies, that
operations, or ramp-up where applicable, at properties in which we hold a royalty, stream or
other interest, continue without further interruption through the period, and the absence of any
other factors that could cause actions, events or results to differ from those anticipated,
estimated, intended or implied. Despite a careful process to prepare and review the forward-
looking information, there can be no assurance that the underlying opinions, estimates and
assumptions will prove to be correct. Forward-looking information is also subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance, or achievements to be materially different from those expressed or implied by such
forward-looking information. Such risks, uncertainties and other factors include, but are not
limited to, those set forth under the caption “Risk Factors” in our most recently filed annual
information form which is available on SEDAR+ at www.sedarplus.ca and on EDGAR at
www.sec.gov. For clarity, mineral resources that are not mineral reserves do not have
demonstrated economic viability and inferred resources are considered too geologically
speculative for the application of economic considerations.
Although we have attempted to identify important risk factors that could cause actual results or
future events to differ materially from those contained in forward-looking information, there may
be other risk factors not presently known to us or that we presently believe are not material that
could also cause actual results or future events to differ materially from those expressed in such
forward-looking information. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on forward-looking
information, which speaks only as of the date made. The forward-looking information contained
in this news release represents our expectations as of the date of this news release and is subject
to change after such date. We disclaim any intention or obligation or undertaking to update or
revise any forward-looking information whether as a result of new information, future events or
otherwise, except as required by applicable securities laws. All the forward-looking information
contained in this news release is expressly qualified by the foregoing cautionary statements.
Cautionary Statement to U.S. Investors
Information contained or referenced in this press release or in the documents referenced herein
concerning the properties, technical information and operations of Triple Flag has been prepared
in accordance with requirements and standards under Canadian securities laws, which differ
from the requirements of the U.S. Securities and Exchange Commission (“SEC”) under subpart
1300 of Regulation S-K (“S-K 1300”). Because the Company is eligible for the
Multijurisdictional Disclosure System adopted by the SEC and Canadian Securities
Administrators, Triple Flag is not required to present disclosure regarding its mineral properties
in compliance with S-K 1300. Accordingly, certain information contained in this press release
may not be comparable to similar information made public by US companies subject to reporting
and disclosure requirements of the SEC.
Technical and Third-Party Information
Triple Flag does not own, develop or mine the underlying properties on which it holds stream or
royalty interests. As a royalty or stream holder, Triple Flag has limited, if any, access to
properties included in its asset portfolio. As a result, Triple Flag is dependent on the owners or
operators of the properties and their qualified persons to provide information to Triple Flag and
on publicly available information to prepare disclosure pertaining to properties and operations on
the properties on which Triple Flag holds stream, royalty, or other similar interests. Triple Flag
generally has limited or no ability to independently verify such information. Although Triple
Flag does not believe that such information is inaccurate or incomplete in any material respect,
there can be no assurance that such third-party information is complete or accurate.
Qualified Person
James Lill, Director, Mining for Triple Flag Precious Metals and a “qualified person” under NI
43-101 has reviewed and approved the written scientific and technical disclosures contained in
this press release.
1 Mineral Reserves and Mineral Resources have an effective date of October 26, 2021, as
contained in the “Tres Quebradas Technical Report”, which was prepared for Neo Lithium and
filed under Neo Lithium’s SEDAR+ profile on November 25, 2021, with an effective date of
October 26, 2021. This information is also contained in the Annual Information Form of Lithium
Royalty Corp. dated March 27, 2024 for the year ended December 31, 2023. Brine produced
from outside the Measured and Indicated Resource is included in volume, but excluded from the
Mineral Reserve. Based on Measured and Indicated Resource of 5,369 kt of LCE at 400/mg/L
cut-off. Resource recovered is 31%. Mineral Resources, which are not Mineral Reserves do not
have demonstrated economic viability. Mineral Resources reported are inclusive of those
portions of the Mineral Resource that have been converted to Mineral Reserves. All Mineral
Reserves and Mineral Resources are reported on a 100% attributable basis to Zijin.
Contacts
Investor Relations:
David Lee
Vice President, Investor Relations
Tel: +1 (416) 304-9770
Email: [email protected]
Media:
Gordon Poole, Camarco
Tel: +44 (0) 7730 567 938
Email: [email protected]