Altius Minerals to Acquire Lithium Royalty Corp. in C$520 Million Cash-and-Stock Deal

Overview

• Altius agreed to buy all common and convertible shares of Lithium Royalty Corp. for C$9.50 per share, valuing the deal at about C$520 million.
• LRC shareholders may elect either C$9.50 in cash per share or 0.240 Altius shares, with a default of C$3.166666 in cash plus 0.160 Altius shares for non-electing holders.
• Elections are subject to proration, with aggregate cash capped at approximately C$174 million and aggregate share consideration capped at 11,500,000 Altius shares.
• The transaction will proceed by plan of arrangement and is not subject to a financing condition, but requires shareholder, court and any required regulatory approvals.
• LRC chief executive Ernie Ortiz is expected to join Altius’s corporate development team following closing, and Altius currently holds about 8% of LRC.