Lithium Royalty Corp. to repurchase C$7 million shares

Lithium Royalty Corp. (LRC) announced plans to repurchase up to C$7 million of its common shares. The company will carry out this buyback through a modified Dutch auction process, offering prices between C$4.50 and C$5.20 per share. The offer is set to begin around March 25, 2025, and will close on or about April 30, 2025, unless extended or cancelled. Currently, LRC has around 55.5 million shares outstanding. If the lowest purchase price is chosen, the buyback would represent about 2.8% of total shares; at the highest price, it would be around 2.4%. Shareholders wishing to sell can choose between two options: they can specify how many shares they want to sell at a certain price or agree to sell their shares at the determined purchase price without specifying an amount. The purchase price will be the lowest price that allows the company to buy the maximum number of shares. The company plans to fund the share repurchase using cash on hand, which was recently boosted from the partial sale of a royalty interest. The board believes this buyback is a good use of funds, as it allows the company to return capital to shareholders while increasing ownership for those who do not sell. LRC has also paused its regular share repurchase plan during this offer. The complete details of the offer will be provided in documents sent to shareholders around the launch date. Shareholders are advised to read these documents and consult their advisors before making any decisions.