Lithium Royalty Corp. has announced that Atlas Lithium Corporation (Atlas) disclosed that Atlas has fully funded Phase I of its lithium project in Brazil’s Lithium Valley, with first production of Phase I expected to start in Q4 2024.

LRC invested US$20 million in Atlas in May 2023, in exchange for a 3.0% gross overriding revenue royalty (GOR). At the time, Atlas had only contemplated Phase I production of 150,000tpa of spodumene concentrate, but has since expanded its production plans to aggregate production of 300,000tpa once Phase II of its project is fully operational.

“This is a seminal milestone for Atlas Lithium, as it raised US$50 million from leading lithium converters. Despite the recent lithium market volatility, strategic interest for quality lithium supply remains robust and this further validates LRC’s focus on low-cost assets that can thrive irrespective of market conditions. This is another welcome development for the Brazilian lithium market following LRC’s first receipt of payments from its royalty with Sigma Lithium in 3Q23,” said Ernie Ortiz, President and CEO of Lithium Royalty Corp.

Funding Secured for Atlas Phase I Production of 150,000tpa – Atlas announced that it raised US$50 million from Chengxin Lithium and Sichuan Yahua.

The funding includes a $10 million equity placement at $29.77 per share, a premium to the prevailing price of Atlas shares, and a $40 million pre-payment in exchange for the two parties receiving 80% of spodumene concentrate from Atlas’ Phase I production (estimated as 60,000tpa each, based on Atlas’ target of up to 150,000tpa of spodumene concentrate for Phase I production).

The offtake agreement is for a 5-year term, with an allowance to terminate upon a change of control transaction for Atlas. Phase II targeted production of an additional 150,000tpa remains unallocated.