Red 5 Ltd. is selling its royalty on Galaxy Resources Ltd.'s Mount Cattlin lithium mine in Western Australia to Lithium Royalty Corp. for A$11 million.

The ASX-listed company has the right to receive a royalty of A$1.50 per tonne of ore processed from the Mount Cattlin site, according to the June 18 statement.

Red 5 will receive 35% of the royalty entitlement for the June quarter, with Lithium Royalty to receive the remainder of the June quarter payout and to receive the full royalty payments starting in the September quarter.

An initial A$7 million is payable upon approval from the Foreign Investment Review Board, with the remainder to be held until the September quarter entitlement is received.