Altius Minerals and an undisclosed partner firm have signed an agreement to acquire an additional 44.9% interest in the Potash Royalty Limited Partnership from Liberty Metals & Mining.

The deal has an aggregate value of C$75m ($58.13m) and is expected to allow Altius to increase its total interest in Potash Royalties to 91.3% from its existing 52.4% interest.

Altius’ share in the total cash consideration amounts to C$65m ($50.38m).

Altius Minerals president and CEO Brian Dalton said: “This acquisition increases Altius’s exposure to the world’s premiere potash mines, and to some of the best free long-term optionality to be found anywhere in the overall resource royalty sector.

"This acquisition increases Altius’s exposure to the world’s premiere potash mines, and to some of the best free long-term optionality to be found anywhere."

“We are delighted to increase our ownership at this particularly opportune point in the lifecycle of these mines.”

Potash Royalties earns royalty revenue from its portfolio of six producing potash mines located in Saskatchewan, Canada, namely Nutrien’s Rocanville, Vanscoy, Allan, Cory and Patience Lake mines, as well as the Mosaic Company’s Esterhazy mine.

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The assets are projected to have an average remaining mine life of 49 years using reserves and resources.

However, the current mine life is expected to increase via the addition of inferred resources and additional exploration potential.

A series of recent capacity expansion measures taken up at the mines successfully increased their production throughput by two times before reaching their nameplate capacities.

In addition, Altius has agreed to buy 18,797,454 common shares in Alderon Iron Ore from Liberty as part of a separate transaction.

The transaction will increase the company’s holdings in Alderon to 39%, representing ownership of a total of 51,838,916 common shares.

Alderon owns a 75% interest in the Kami Iron Ore project, which is situated in Labrador, Canada.

The deal is subject to the fulfilment of customary closing conditions and is anticipated to be completed on or before 31 March.