TNR Gold highlights developing M&A opportunities across royalty and gold assets

TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) is continuing a strategic review to explore merger and acquisition opportunities, it said Wednesday, as interest in green energy metals and gold royalty assets grows.

The Vancouver-based company, which holds net smelter return (NSR) royalties on high-profile lithium and copper projects in Argentina, and a majority interest in a gold exploration project in Alaska, said its assets are attracting attention from potential partners and acquirers across the mining industry.

“TNR Gold is your gateway to the green energy revolution and gold stability,” said executive chairman Kirill Klip. “We’re building a leading green energy metals royalty and gold company.”

The company holds a 1.5% NSR royalty on the Mariana Lithium Project in Argentina, operated by China’s Ganfeng Lithium, and a 0.4% NSR royalty on McEwen Mining’s Los Azules copper project, which is backed by Rio Tinto and Stellantis. TNR also owns a 90% stake in the Shotgun Gold Project in Alaska, near the Donlin Gold deposit, with an inferred resource of over 705,000 ounces.

Klip said these holdings could deliver significant royalty cash flows without requiring capital investment from TNR, offering shareholders exposure to lithium, copper, silver and gold.

The company formed a special committee of independent directors in October 2023 to evaluate strategic options, including potential royalty acquisitions and joint ventures. TNR has also received and defended against hostile takeover attempts, which it characterized as “opportunistic low-ball offers.”

First royalty payments

Recent M&A activity has validated TNR’s asset value, management said, citing Lithium Royalty’s $9 million acquisition in 2023 of a 0.5% royalty in the Mariana project. “Our team has successfully repaid TNR Gold’s investment loan in full, returning our shareholders all our assets free from encumbrance,” Klip said.

The company is also considering a potential spinout of its Shotgun Gold Project into a new entity, AmeriGold, aimed at securing a joint venture with a major mining company. The project lies 190 kilometres south of the Donlin Gold Project in Alaska’s Kuskokwim Belt, an area TNR views as an emerging multi-million-ounce gold district.

TNR said it has consolidated its claims and completed recent exploration work at Shotgun Ridge and Winchester prospects. The company is now actively seeking a partner to fund the next phase of drilling and development.

Meanwhile, TNR expects to receive its first royalty payments from the Mariana Lithium Project, following the start of production in February 2025. Ganfeng Lithium announced the commencement of formal output at a 20,000 tonnes-per-annum lithium chloride facility.

The company reiterated that it does not need to contribute capital to the Mariana, Los Azules, or Josemaria projects, positioning itself as a royalty generator with limited financial exposure.

“Our business model provides a unique entry point into the supply chains for critical materials powering the energy transition, alongside gold as a hedge in today’s economic cycle,” Klip said.

TNR said it is also weighing a share buyback program, subject to regulatory approval, as part of its capital management strategy.

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