TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) announced on Monday that Ganfeng Lithium has reaffirmed its plans to commence production at the Mariana Lithium Project in Argentina by the end of 2024.
TNR holds a 1.5% net smelter return (NSR) royalty on the project, including a 0.15% NSR royalty held on behalf of a shareholder.
According to Ganfeng Lithium's interim report published at the end of September 2024, the company continues to advance construction at the Mariana Lithium Project, which began in June 2022. Once operational, the facility is expected to produce 20,000 tons of lithium chloride annually, a critical component for lithium-ion batteries.
Kirill Klip, executive chairman of TNR Gold, emphasized the strategic importance of the company's royalty portfolio in positioning TNR as a key player in the energy transition.
"We are very pleased that the Mariana Lithium Project is progressing smoothly towards commercial production scheduled for 2024," Klip said in a statement.
"Last year we repaid our investment loan in full, and our company has no debt. We believe that the recent market prices of our shares do not properly reflect the underlying value of the shares.
"Our transformation from the project generation junior mining company into the cash flow generating royalty company will bring the necessary catalyst for the market valuation of our assets."
At the recent 13th International Seminar on Lithium in South America, Jason Luo, president of Ganfeng's subsidiary Litio Minera Argentina SA, confirmed that the project is on track, with its operational phase having started in January 2023.
Representatives of Ganfeng Lithium informed Salta Governor Gustavo Sáenz that the Mariana Lithium Project, under construction since June 2022, is expected to begin producing approximately 20,000 tons of lithium chloride annually in 2024.
According to the Salta government, Ganfeng announced that the project entered its operational phase in January 2023. TNR Gold said it anticipates receiving its first royalty payments from the project once production begins.
TNR's business model allows the company to benefit from royalties on projects operated by major mining companies without contributing capital to their development. In addition to its stake in the Mariana Lithium Project, TNR holds royalties on the Los Azules Copper Project and the Josemaria Project, as well as exploration-stage assets like the Shotgun Gold Project.
The company's exposure to industry-leading operators, including Ganfeng Lithium, McEwen Mining, and Lundin Mining, is central to its strategy of securing long-term cash flow from critical materials and gold royalties.