Altius will acquire Lithium Royalty Corp. for C$520 million, expanding lithium royalties, boosting long-term growth, and leveraging counter-cyclical market timing.
Altius Minerals Corporation and Lithium Royalty Corp. have jointly announced that they have entered into a definitive agreement under which Altius will acquire 100% of the issued and outstanding common shares and convertible common shares of Lithium Royalty Corp. The transaction will be completed through a court-approved plan of arrangement, marking a major strategic expansion of Altius’s royalty portfolio within the rapidly evolving lithium sector.
Under the terms of the agreement, the total transaction value is approximately C$520 million, translating into an agreed price of C$9.50 per Lithium Royalty Corp. equity share. Shareholders of Lithium Royalty Corp. will have the option to receive this consideration either fully in cash at C$9.50 per share or in equity, consisting of 0.240 of a common share of Altius for each Lithium Royalty Corp. share held. These elections are subject to proration mechanisms designed to ensure that no more than one-third of the total consideration is paid in cash, while the equity component is capped at a maximum issuance of 11.5 million Altius shares.
For shareholders who do not make an election, a default consideration will apply. This default option consists of C$3.16 in cash combined with 0.16 of an Altius common share per Lithium Royalty Corp. share, again subject to the overall proration limits outlined in the agreement.
On an aggregate basis, the consideration payable under the transaction is expected to include approximately C$173 million in cash and around C$347 million in Altius shares. Notably, Altius already holds an effective pre-existing ownership interest of roughly 8% in Lithium Royalty Corp. This interest arises from Altius’s holdings in certain limited partnership units that carry conversion rights into Lithium Royalty Corp. equity shares, further aligning the strategic interests of both parties.
From a strategic standpoint, the acquisition significantly strengthens Altius’s portfolio by adding a substantial suite of lithium-focused royalties. The transaction brings 37 new royalties into Altius’s asset base, all of which are royalties rather than streams. Many of these assets are characterized by long to ultra-long implied resource lives, offering meaningful long-term optionality. Among the acquired assets are four producing-stage royalties, three of which are expected to be commissioned during 2025 and are currently in ramp-up or expansion phases.
In addition, the portfolio includes 12 advanced-stage projects that have already completed formal economic studies, including seven projects supported by feasibility studies and five backed by preliminary economic assessments. A further three to five projects are anticipated to commence operations between 2026 and 2030, creating a visible pipeline of future growth. The geographic distribution of these assets is heavily weighted toward low geopolitical risk jurisdictions, primarily Canada, Australia, and South America, and is diversified across both brine-based and hard-rock lithium production methods.
Altius expects the acquired royalties to contribute meaningfully to revenue growth, with acquisition-related royalty income projected to rise steadily toward C$40–60 million annually by the end of the decade at current spot prices. This would further reinforce Altius’s already strong percentage revenue growth profile.
The timing of the acquisition is deliberately counter-cyclical. Lithium prices have recently declined to cyclical lows below US$9,000 per tonne of lithium carbonate equivalent, compared with previous highs exceeding US$80,000 per tonne. Despite this price weakness, long-term fundamentals remain robust. Global lithium demand is forecast to surpass 1.5 million tonnes of LCE in 2025, driven by electric mobility, grid-scale energy storage, consumer electronics, and emerging battery technologies. Demand growth for lithium has exceeded 30% compound annual growth over the past five years, and a potential market deficit is expected to re-emerge as early as 2026 as demand outpaces supply growth that current prices fail to adequately incentivize.
Finally, the transaction offers compelling corporate synergies. It complements Altius’s existing exposure to the electricity and energy transition sectors, particularly as battery adoption accelerates worldwide. The deal also provides access to Lithium Royalty Corp.’s industry relationships and origination capabilities, with current CEO Ernie Ortiz expected to join Altius’s corporate development team following transaction completion. Combined with anticipated general and administrative efficiencies and revenue scaling, these synergies are expected to enhance Altius’s pro-forma EBITDA margins over time.
