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The Metals Company and Low Carbon Royalties Form Strategic Partnership
Low Carbon Royalties provides critical funding to low-carbon emitting energy production and technologies, transition metals and minerals required for energy
About this update from Tmc The Metals Company Inc.
[{"type":"text","content":"Low Carbon Royalties provides critical funding to low-carbon emitting energy production and technologies, transition metals and minerals required for energy storage and electrification, and the evolving environmental markets. Low Carbon Royalties is led by Brian Paes-Braga, Managing Partner of SAF Growth, the equity investment arm of SAF Group, one of Canada’s largest alternative asset managers, and the Founder and CEO of Lithium X Energy Corp.The Metals Company, an explorer of the world’s largest estimated undeveloped resource of energy transition metals (nickel, copper, cobalt, manganese) has contributed a future revenue royalty on its NORI project in consideration for a 35% strategic stake in Low Carbon Royalties and US$5,000,000, with CEO and Chairman, Gerard Barron, joining the Board of DirectorsStrategic stake in Low Carbon Royalties has the potential to become an independent future source of mission-aligned funding for The Metals Company’s projects NEW YORK, Feb. 21, 2023 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (NASDAQ: TMC) (“The Metals Company” or “TMC”) today announced a strategic partnership with Low Carbon Royalties Inc. (“Low Carbon Royalties” or “LCR”) to finance the development and production of low-carbon fuels and energy transition metals. TMC and LCR have agreed to a purchase and sale agreement (the “Agreement”) whereby LCR has acquired a 2.0% gross overriding royalty on any future revenue derived from TMC’s NORI area in the Clarion Clipperton Zone of the Pacific Ocean (“NORI Royalty”). In consideration for the NORI Royalty, TMC received a 35.0% strategic equity interest in LCR and US$5,000,000 cash. TMC will retain the right to repurchase up to 75% of the NORI Royalty at an agreed capped return, exercisable in two transactions, between the second and the tenth anniversary of the Agreement. If both repurchase transactions are executed, LCR’s remaining gross overriding royalty on the NORI project revenue will be 0.5%. The NORI Royalty has been added to the LCR portfolio that contains a 1.6% gross overriding royalty on a producing natural gas field in Latin America, providing exposure to a lower-carbon transition fuel aligned with government emissions reduction policies. LCR is committed to expanding its portfolio of assets to deliver a new source of funding to producers of low-carbon energy and energy tr...