Arc Mineral Royalties Ltd. has completed its change of business transaction, pivoting from lithium exploration to an investment issuer focused on precious metals royalties through the acquisition of a 1% net smelter return royalty on the advanced West Australian Mt Henry Gold Project.

Under the transaction agreement with Alicanto Minerals Ltd., which now operates as Sinclair Gold Ltd., the company paid A$5 million in cash and issued 4 million common shares to secure the initial royalty. Alongside the closing of the royalty acquisition, Arc Mineral Royalties completed a non-brokered private placement raising gross proceeds of $12 million through the issuance of 16 million common shares at a price of $0.75 per share. No cash finder fees were paid, though the company issued 4 million non-transferable warrants exercisable at $0.75 per share for five years.

The transaction grants Arc Mineral Royalties an option to acquire an additional 1% net smelter return royalty on the project for a further cash payment of A$10 million. That option must be exercised within 30 days following the announcement by Sinclair Gold of a JORC-compliant Mineral Resource of 2 million ounces for the project.

In connection with the corporate restructure and change of business, the company has officially changed its name from Stria Lithium Inc. to Arc Mineral Royalties Ltd. Common shares are expected to resume trading on the TSX Venture Exchange under the new ticker symbol ARO on the second trading day following the issuance of the exchange's final bulletin, adopting a new CUSIP number.

Concurrently with the completion of the transaction, the company welcomed Adam Davidson as its new Chief Executive Officer and Tyron Rees as Vice-President of Corporate Development. Judith Mazvihwa-MacLean continues in her role as Chief Financial Officer, while the existing board of directors remains in place.

To support the transition and new management structure, the company expanded its equity incentive plan to reserve a total of 13,129,485 common shares for awards, representing 20% of the issued and outstanding shares following the corporate changes. The incoming leadership and consultants also received options, restricted share units, and inducement shares subject to regulatory hold periods and multi-year escrow agreements with Computershare Investor Services.

Read the full announcement: Stria Completes Change of Business Transaction, Concurrent Offering and Changes Name to Arc Mineral Royalties Ltd.