Altius acquired the project as part of its acquisition of Carbon Development Partnership in May this year.
Under the deal, TCL will be able to earn a 90% project interest for a 48-month period, subject to retention by Altius of a 10% project interest and up to 1.5% price-based gross revenue royalty.
TCL will have to make $10m in milestone payments, including payment of $500,000 to Altius within six months of execution of this agreement and prepare a NI 43-101 compliant resource document for the project.
Altius CEO Brian Dalton said: "This represents the first property option and royalty agreement stemming from this portfolio and is consistent with our strategy of growing our long-term base of royalties through the conversion of project interests to royalties.
"Telkwa is one of a great number of advanced projects that we acquired through CDP and we are actively pursuing several other such agreements."
The 13,000 hectare-Telkwa coal project is said to host measured and indicated coal resources of 58.9 million tons and inferred resources of 27.8 million tons.
