TNR has not disclosed the offer price. At Wednesday morning’s 32-cent share price, TNR is valued at about $78 million, making Altius’s purchase of the remaining shares worth roughly $68 million before any takeover premium. TNR said its special committee of independent directors reviewed the proposal and that the company has entered an exclusivity arrangement with Altius; no definitive transaction is agreed, and there is no assurance any deal results. TNR shares gained 8.3 percent Wednesday morning after closing Tuesday at 30 cents, and have traded between 9 and 36.5 cents over the past year.
The prize is the royalty book. TNR holds a 0.4 percent net smelter return royalty on McEwen’s Los Azules copper project in San Juan, where a 2025 feasibility study outlined proven and probable reserves containing 10.2 billion pounds of copper and average production of about 205,000 tonnes of copper cathode a year in the first five years. It also holds a 1.5 percent NSR on Ganfeng Lithium’s Mariana project, though Ganfeng can repurchase 1 percent for $1 million, plus a 7 percent net profits royalty on the Batidero I and II properties at the Josemaria project being advanced by Lundin Mining and BHP, and 90 percent of the Shotgun gold project in Alaska.
The approach comes amid a months-long shareholder dispute with Eucalyptus Resources Opportunities Fund, which criticized Altius’s initial investment as dilutive. On Monday the two sides agreed to discontinue a court petition and give the board time to finish its strategic review. Altius built to about 12.7 percent this year, starting with 23.5 million shares at 17.75 cents in May, and holds a right of first offer over the Mariana and Los Azules royalties.