General discussion, page-42

So I inquired of Lithium Royalty Corp as to roughly how they figure out what to offer as an investment in exchange for a royalty. They seek a high teens after tax IRR and base it on (obviously) annual tonnage, their (conservative) long term forecast for spodumene price and how long it takes from investment to revenue to occur.

So based on that info ... this is a rough calculator for ATLAS LITHIUM (reverse engineered) using my estimate of $2,000/t long term spodumene price, Atlas' projection of a mine producing 150Ktpy of SC and my estimate of 2yrs to being in production

So all that is left to do for CRR, were it to consider doing a royalty is to get an estimation for the same variables.

Don't forget that GT1 (or predecessor title holder) received investments from LRC for Seymour, Root and Wisa in exchange for royalty - so there is a reasonable history for that.


Just for grins ... a 1.5% royalty in exchange for US$12M assuming in production in 2 yrs time and LoM of 10 years at 150Ktpy and delivers to LRC a ~16% IRR. I'd be happy with that rather than a equity capital raising.