Triple Flag Precious Metals has entered into a definitive agreement to acquire an existing 0.5% royalty on the Tres Quebradas construction-stage lithium project from Lithium Royalty Corp. for $28 million.Tres Quebradas, located in Catamarca province of Argentina, is 100% owned and operated by Zijin Mining Group. It is fully permitted. It was developed by Neo Lithium, which was acquired by Zijin in 2021.
Triple Flag's chief executive underlined that the streaming company's focus remained on precious metals opportunities, but added that "the acquisition of the Tres Quebradas royalty is a unique, counter-cyclical opportunity to deploy capital and gain exposure to a large, well-capitalised mining project with a long life and significant upside potential at attractive returns".Royalty revenue from phase 1 is expected to begin in the second half of 2025.