The Securities Commission granted Lithium Royalty Corp. (the Filer) an exemption from the requirement to file technical reports for its royalty interests in two mineral properties, as it prepares to become a reporting issuer through an initial public offering (IPO). The exemption is based on National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), specifically sections 4.1(1) and 9.1(1).
Key points include:
1. The Filer is not currently a reporting issuer and is not in default of securities legislation.
2. It holds royalty interests in the Grota do Cirilo property and the Tres Quebradas property, which are material to the Filer and operated by Sigma Lithium Corporation and Zijin Mining Group Co. Limited, respectively.
3. Sigma and Zijin are both reporting issuers or have securities trading on recognized exchanges, and they have filed technical reports for the respective properties in compliance with NI 43-101.
4. The Filer has disclosed scientific and technical information about the properties in its Preliminary Prospectus and will do so in its Final Prospectus.
5. The Filer will become a reporting issuer upon the filing and receipt of its Final Prospectus for the IPO.
6. The Filer is not the owner or operator of the properties but anticipates the royalty interests will be material to its operations.
The Commission’s decision to grant the exemption is based on the Filer’s representations and the fact that the scientific and technical information material to the Filer has already been disclosed by the current or previous owners or operators of the properties. The exemption is contingent upon the Filer identifying the source of the scientific and technical information disclosed in any document filed under section 4.2(1) of NI 43-101.
The outcome allows the Filer to proceed with its IPO without the need to file separate technical reports for its royalty interests, relying instead on the existing disclosures made by the operators or owners of the mineral projects.