TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) provided an update on its strategic plans, highlighting progress across its royalty portfolio and disclosing increased interest in potential M&A transactions.
The company said its focus remains on avoiding shareholder dilution, cutting expenses, and delivering above-market returns. Management confirmed it has resumed share purchases and may pursue another buyback when royalty cash flow allows.
Proactive: Kirill, very good to speak with you. You’re recently out with the corporate update and strategic review of developing M&A opportunities. What are the strategic opportunities for TNR Gold?
Kirill Klip: As you know, we are building TNR Gold, the green energy metals royalty and gold company. It was very important to deliver an update to all our shareholders. We confirm that our strategic priorities remain the same: we aim to maximize value for shareholders by avoiding unnecessary dilution, delivering above-market returns, and reducing general and administrative expenses.
You said there's been recent increased M&A interest in TNR Gold. This would suggest success with your market activities. Could you expand on that, please?
Yes. We consider the dramatic increase in interest from the industry as a success of our strategy. We succeeded with our marketing and managed to communicate our story—about gem royalty in a green energy metals and gold company. A lot of companies are now looking at our assets and the company as a whole. In early 2023, we closed a deal with Lithium Royalty Corp, which valued a portion of our royalty portfolio at US$9 million. This validated our strategy and helped reject opportunistic, lowball bids.
You’ve managed to deliver value to your shareholders above market returns, despite the market uncertainty we’re seeing at the moment.
Exactly. That transaction helped us repay our investment loan and returned our assets to shareholders debt-free. Even during COVID-19 and the ongoing trade war, we delivered above-market returns. Our share price traded above averages, and now, with insider reporting in place, I can share that I’ve personally invested in the company for over 20 years. We resumed our buying, and management is increasing its stake.
Could you take us through your strategic growth plans as you maintain stability at the company?
Growth is tied to our main projects: Mariana Lithium, Los Azules Copper, and the Batidero I and II properties of the Josemaria Project with Lundin Mining. We're also reviewing M&A interest, including potential full acquisitions and new royalty opportunities. Our strategic committee, formed in fall 2023, is assessing these carefully.
We also have a shareholder rights plan in place to guard against hostile takeovers and protect all shareholders. Once cash flow from royalties starts, we may pursue another share buyback, subject to regulatory approval. We are also seeking a strategic investor for our Shotgun Gold Property in Alaska—we prefer not to use our own capital for development.
The Shotgun Gold Project is one we haven’t discussed much. Can you give us an update?
Yes. We're pursuing a strategic transaction with a major gold mining company that already operates in Alaska. The asset has over 700,000 ounces of inferred gold. We have five drill-ready targets, and a new standalone entity, AmeriGold, has been created to potentially spin out this project. We hope to update shareholders later this year.
Another exciting project is the Mariana Lithium Project. That’s an NSR royalty holding, and of course, you are starting to generate cash from that?
Yes, exactly. We celebrated the start of production in February. Phase one is now complete, which is very important for all our shareholders, and we can now start to think about phase two. Ganfeng is producing lithium chloride at 20,000 tonnes of annual capacity. I encourage shareholders to review my blog posts, where I connect the technical aspects of this production.
Ganfeng is producing lithium chloride, a key precursor for lithium metal used in solid-state batteries. These batteries are now in test production with energy densities up to 500 Wh/kg and in commercial production at 400 Wh/kg. These batteries enable electric vehicles to travel further and operate more safely.
Another exciting project is Los Azules, with the definitive feasibility study due in July.
Yes. There’s great interest. Some say I dream big—first electric cars, now humanoid robots—but Los Azules is very real. It’s a giant copper, gold, and silver project in Argentina, among the top four copper projects not owned by a major. Under Rob McEwen’s team, the project has over 11 billion pounds of indicated copper and nearly 27 billion inferred. We expect further resource upgrades in the feasibility study and possibly up to 180,000 tonnes of annual copper production. This supports the potential valuation of our royalty at up to US$30 million.
Before we end, could you give us an update on the Batidero I and II NPR Royalty Holding?
Yes. We hold a 7% net profit royalty on these properties, located near Lundin Mining’s Josemaria open-pit project. BHP is also involved in developing the area. We’re awaiting a 43-101 report from Lundin Mining, which may include data on our properties. This royalty offers future growth for our portfolio.
As I mentioned, we believe in dreaming—but based on solid economics. We aim to deliver above-market returns to shareholders.
Quotes have been lightly edited for style and clarity