Lithium Royalty Corp. plans $150-million IPO to boost investment in mines – by Andrew Willis (Globe and Mail – February 23, 2023)

Five-year-old Lithium Royalty Corp. is going public with a planned $150-million-plus stock sale, raising money to fund the mines that feed a rapidly growing battery industry.

Lithium Royalty filed the paperwork on Wednesday for an initial public offering on the Toronto Stock Exchange, after tapping institutional investors for approximately $130-million and profitably investing in 27 projects.

Despite a recent selloff in lithium stocks, driven by falling prices, Lithium Royalty expects to raise at least $150-million, according to investment banking sources. The Globe and Mail agreed not to name these sources because they are not authorized to speak at this stage in the IPO process. The offering would qualify as one of the five largest IPOs on the TSX in the past year, a dry period for public market debuts.

Royalty companies finance mining or oil and gas projects in return for a share of future revenue. The concept has proven its merits across economic cycles, creating public companies such as Franco-Nevada Corp., which was launched in 1983 and has a $33.5-billion market capitalization, and the oil patch’s PrairieSky Royalty Ltd., valued at $5.3-billion and founded 10 years ago.

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