St. John’s-based mining royalty and development company Altius Minerals has a definitive agreement to acquire Toronto-based Lithium Royalty Corp. for approximately $521 million in shares and cash, increasing its heft within the Canadian critical minerals sector.

Announced Monday morning, the proposed acquisition consists of approximately $174 million in cash and $347 million in common shares of Altius.

The acquisition, which is subject to the approval of the companies, regulators and the courts, will fold in 37 new royalties primarily located in Canada, Australia and South America, if approved. The resources from the assets, which are mostly a source of lithium called spodumene, are invaluable for electrification and decarbonization initiatives.

Expectations for lithium demand to increase because of the need for batteries in transportation and energy storage, plus Altius’s royalty-level exposure to the renewable electricity sector, are identified as reasons for the acquisition. Also, most of Lithium Royalty's assets are said to have long to ultra-long implied resource lives, “a fundamental long-term optionality consideration for Altius,” a release states.

The transaction “creates strong value for shareholders by adding a significant pipeline of operating, development and evaluation stage assets to the base and battery metals component of our business,” Brian Dalton, CEO of Altius, said in the announcement. Altius proposed the acquisition, which was subject to a strategic review by Lithium Royalty that took place in November and December.

The acquisition is expected to close in Q1 2026.

Altius's platform will enable Lithium Royalty "to execute on its proprietary pipeline of critical mineral royalties and continue to achieve outsized growth among royalty peers,” Ernie Ortiz, president and CEO of Lithium Royalty, said in a separate announcement.

Sustainable Biz Canada has reached out to Altius Minerals (ALS-T) and Lithium Royalty (LIRC-T) for comment. We will update this article with any additional information as it becomes available.

Lithium Royalty’s assets

Of the 37 royalties, four are producing-stage royalties and are currently ramping up or under expansion; 12 are in the advanced stage. An additional three to five projects are scheduled to start operations between 2026 and 2030.

Simultaneous with the announcement of the acquisition was Lithium Royalty unveiling a 20-year agreement to acquire a 1.5 per cent trailing product sales fee royalty on the Goulamina lithium project in Mali from Australia's Leo Lithium Ltd.

Lithium Royalty says the Goulamina project is one of the world’s largest spodumene hard-rock lithium deposits.

“The robust economics and expected quick payback period of the royalty investment offer an attractive risk-reward" as the company enters a new jurisdiction, Ortiz said in a release about the Goulamina project.

If the acquisition is approved, Ortiz is expected to join Altius’s corporate development team to “oversee the assets and relationships that are being acquired,” Dalton said, and support future potential initiatives.

Altius Minerals royalty projects

The two companies have a pre-existing relationship. Altius is an early strategic investor and partner in Lithium Royalty, and holds an approximately eight per cent gross ownership interest in the company.

Both companies have emphasized how their assets can provide the resources needed for the energy transition. Rising demand for renewable energy generation, electric vehicles and batteries requires heaps of metals such as lithium, copper and cobalt to manufacture the electronics and other components.

Altius holds royalties in 10 producing assets:

• six potash mines in Canada;
• the Voisey's Bay nickel, copper and cobalt mine in Newfoundland and Labrador;
• Lundin Mining's copper-gold Chapada mine and Sigma Lithium's Grota do Cirilo project, both in Brazil; and
• a seven per cent gross overriding royalty in the Labrador Iron Ore Royalty Company.

The company also holds approximately 57 per cent of Altius Renewable Royalties, which has an interest in 33 renewable energy royalties.

It is developing and exploring gold, copper, iron, zinc and uranium assets as well.