Lithium Royalty Corp Enters into Agreement to Acquire Cash Flowing Goulamina Royalty Operated by Ganfeng Lithium
- Strategic acquisition enhances LRC’s portfolio with exposure to a tier-one, large-scale producing lithium asset with best-in-class operator on a low-cost asset
- LRC enters into agreement to acquire a 1.5% Trailing Product Sales Fee (TPSF) royalty on the world-class producing Goulamina lithium project from Leo Lithium for A$40 million
- Goulamina 1.5% TPSF royalty on up to 500,000 tonnes per annum
- Cash-flowing royalty – Leo Lithium received first quarterly TPSF payment of US$574,748 from Ganfeng
TORONTO–(BUSINESS WIRE)–Lithium Royalty Corp. (TSX: LIRC) (“LRC” or the “Company”) is pleased to announce that it has entered into a definitive agreement to acquire a 1.5% Trailing Product Sales Fee (TPSF) royalty on the Goulamina lithium project in Mali from Leo Lithium Limited. The Goulamina project is operated by Ganfeng Lithium Co. Ltd., one of the world’s largest integrated lithium producers with a market capitalization of approximately US$17.6 billion. The TPSF royalty rate is calculated as 1.5% of gross revenue from the sale of lithium products from Goulamina, with payments made quarterly over the 20-year term, commencing from the unloading of the first commercial shipment which occurred in August 2025. The royalty is subject to a volume limit of 500,000 tonnes of spodumene concentrate per annum and is denominated in USD. The royalty agreement is effective through August 2045, and royalty payments commenced as of Q3 2025, with the first payment of US$574,748 received by Leo Lithium. The royalty is paid out of a Singapore entity owned by Ganfeng.
This acquisition represents a strategic opportunity to establish immediate, revenue-generating exposure to a world-class producing lithium asset. The Goulamina project has commenced operations, with Ganfeng’s initial shipments generating cash returns to the TPSF royalty holders, thereby de-risking the investment profile compared to development-stage assets.
This acquisition represents the second royalty held by LRC that is operated by Ganfeng Lithium, as it complements the royalty on Ganfeng’s Mariana lithium project that is currently also in production.
Ernie Ortiz, President and CEO of Lithium Royalty Corp, said:
This acquisition is aligned with LRC’s focus on acquiring attractive royalties on cash flow producing assets,
“The Goulamina royalty provides immediate production-backed cash flow, validated by the TPSF royalty payment received by Leo Lithium in November 2025. Combined with Ganfeng’s world-class operational expertise and the scale of the Goulamina asset, we believe this royalty will generate material returns for LRC shareholders. At current spot prices of approximately US$1,300/t, the royalty would generate US$8.9 million in royalty cash flow, assuming the royalty cap of 500,000 tpa is reached with 5.5% concentrate grade. The robust economics and expected quick payback period of the royalty investment offer an attractive risk reward as LRC enters a new jurisdiction for its portfolio.”
Transaction Overview
LRC will acquire this royalty for a total purchase price of A$40 million, payable in two tranches to be funded through a combination of internal cash and a bridge loan provided by Altius Minerals Corporation. The first payment of A$20 million is expected to be made in late 2025 or early 2026, and the second payment of A$20 million is due no later than early February 2026. This phased payment structure provides flexibility and allows LRC to continue pursuing other opportunities in its active pipeline of lithium and critical mineral royalties.
Goulamina Project Overview
The Goulamina lithium project in Mali is one of the world’s largest spodumene hard-rock lithium deposits and represents the 4th largest spodumene resource globally. The project hosts a mineral resource of 108 million tonnes (Mt) at 1.44% Li2O measured and indicated, with an additional 159.2 Mt at 1.33% Li2O in the inferred category, with no reporting cut-off grade applied, demonstrating the substantial resource base underpinning long-term production. According to the Leo Lithium definitive feasibility study (DFS), Stage 1 production capacity is approximately 506,000 tonnes per annum (tpa) of spodumene concentrate at 6% (SC6), representing a fully developed, operational production facility. Ganfeng has guided for production increases to over 1,000,000 tpa in a planned Phase 2 expansion, positioning Goulamina as one of the world’s largest lithium producers globally. The project is owned 65% by Ganfeng and 35% by the government of Mali, although the royalty is payable on 100% of production at the Goulamina project.
Mali
Africa has become an increasingly important source of supply in the lithium market, growing from 2% of global supply in 2022 to 19% of supply in 2025, per Benchmark Minerals Intelligence (BMI). Goulamina is a cornerstone asset on the continent, projected to account for 24% of African lithium supply in 2028, per BMI. This TPSF royalty allows LRC to participate in the growth of supply in Africa through a marquee asset in the region.
Mining is a longstanding industry in Mali, accounting for over 75% of total export revenue, per the International Trade Administration. Mali has positioned itself as an increasingly significant lithium jurisdiction in West Africa, supported by an established regulatory framework and world-class mineral potential. The country implemented the 2023 Mali Mining Code, which provides a comprehensive framework for resource development that includes provisions for state participation, revenue stability, and clarity on long-term operational rights. Goulamina is aligned with the mining code, and the government has already exercised their right to a 35% equity stake in the project, fostering government alignment.
Leo Lithium and Ganfeng Lithium Overview
Leo Lithium was the former operator of the Goulamina project, having been demerged from Firefinch Limited and listed on the ASX in June 2022 to serve as the dedicated operator for the lithium asset. Through a strategic exit from the Goulamina project in May 2024, Leo Lithium sold its remaining 40% stake to Ganfeng in exchange for cash consideration and exchanged its marketing and other rights under a cooperation agreement for a 1.5% TPSF royalty on future production (now to be acquired by LRC). Following its exit, Leo Lithium has transitioned its strategy toward monetizing its TPSF royalty and returning capital to shareholders.
Ganfeng Lithium is one of the world’s largest integrated lithium producers, with vertically integrated operations spanning exploration, mining, processing, and battery materials manufacturing. Ganfeng’s involvement in Goulamina represents a strategic consolidation of its hard-rock lithium portfolio and reflects the company’s commitment to securing long-term, large-scale lithium supply to serve the global battery and energy storage markets. Ganfeng also operates the wholly-owned Mariana lithium brine located in Argentina, on which LRC also holds a royalty interest, creating valuable portfolio synergies and providing LRC with complementary exposure to Ganfeng’s premier lithium operations. This dual investment in Ganfeng-operated assets strengthens LRC’s position in the company’s long-term strategy and provides diversified geographical exposure.
Qualified Persons
The technical and scientific information contained in this news release was reviewed and approved in accordance with NI 43-101 by Don Hains, P.Geo. of the Hains Engineering Company Limited, a “qualified person” as defined in NI 43-101.
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Lithium Royalty Corp Enters into Agreement to Acquire Cash Flowing Goulamina Royalty Operated by Ganfeng Lithium, source
