VANCOUVER, BC, Aug. 11, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) ("Electric Royalties" or the
"Company") is pleased to announce that it has closed the
previously announced acquisition of the Globex portfolio of
royalties ("Globex Portfolio"). The Company acquired 25% of the
Middle Tennessee Mine Royalty ("MTM Royalty") and 100% of the
Glassville Manganese Royalty (the "Glassville Royalty") for
C$250,000 and 9,000,000 common shares
and 5,500,000 common share purchase warrants of the Company (see
Company news release dated May 26,
2021) in the transaction. Funds controlled by Sprott
Resource Streaming and Royalty Corp. ("Sprott Streaming")
co-invested and acquired 75% of the MTM Royalty for C$13.5 million with Electric Royalties retaining
an option to acquire an additional 25% royalty interest from Sprott
Streaming (see Company news release dated May 26, 2021).
![Electric Royalties Ltd. Logo (CNW Group/Electric Royalties Ltd.) Electric Royalties Ltd. Logo (CNW Group/Electric Royalties Ltd.)](https://mma.prnewswire.com/media/1592501/Electric_Royalties_Ltd__Electric_Royalties_Closes_Cash_Flowing_R.jpg)
Brendan Yurik, CEO of Electric
Royalties, stated "We are excited to close this
transformational acquisition with our partners at Sprott Streaming.
On receipt of the first royalty payment we will be transformed into
a cash flowing royalty company, a significant milestone for
Electric Royalties. The transaction is our first syndication of a
royalty financing, setting the stage for additional co-investment
transactions moving forward, a mechanism which minimizes dilution
to the Company whilst potentially enabling us to acquire interests
in royalties on significant assets. Our portfolio now consists of
14 royalties, including our 25% interest in the revenue generating
MTM Royalty acquired from Globex as part of the Globex Portfolio,
and a number of significant development stage royalties being
advanced toward production by the owners of the underlying
properties at no cost to Electric Royalties and we look forward to
updating the market with new potential portfolio acquisitions in
the near future."
Globex Portfolio
The Globex Portfolio acquired
consists of a sliding-scale, gross metal royalty (described below)
on zinc production at the operating Middle Tennessee Mine, located
in Smith County, Tennessee,
United States, and operated by a
subsidiary of the Trafigura Group ("Trafigura"), and a 1% Gross
Revenue Royalty ("GRR") on the Glassville Manganese Project which
is located in close proximity to the Battery Hill project in
New Brunswick, Canada on which the
Company holds an existing royalty.
MTM Royalty
The MTM Royalty is a sliding-scale gross
metal royalty that varies with the zinc price: no royalty is
payable if the zinc price is below US$0.90 per pound, a 1.0% royalty is paid at zinc
prices between US$0.90 and
US$1.10 and a 1.4% royalty is paid at
zinc prices above US$1.10 per pound.
The Mid Tennessee Zinc Mines have been in intermittent operation
for over 50 years and have produced over 2.7 billion pounds of zinc
(https://www.northernminer.com/news/sra-revives-mid-tennessee-zinccomplex/1000220368/).
Three underground mines make up the complex, namely Gordonsville, Elmwood and Cumberland. The mine complex is owned by
Trafigura and operated by Nyrstar, Trafigura's integrated mining
business unit that includes the nearby Clarksville, Tennessee smelter complex.
About Electric Royalties Ltd.
Electric Royalties is a royalty company established to take
advantage of the demand for a wide range of commodities (lithium,
vanadium, manganese, tin, graphite, cobalt, nickel, zinc &
copper) that will benefit from the drive toward electrification of
a variety of consumer products: cars, rechargeable batteries, large
scale energy storage, renewable energy generation and other
applications.
Electric vehicle sales, battery production capacity and
renewable energy generation are slated to increase significantly
over the next several years and with it, the demand for these
targeted commodities. This creates a unique opportunity to invest
in and acquire royalties over the mines and projects that will
supply the materials needed to feed the electric revolution.
Electric Royalties currently has a growing portfolio of 14
royalties and is focused predominantly on acquiring royalties on
advanced stage and operating projects to build a diversified
portfolio located in jurisdictions with low geopolitical
risk.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements Regarding Forward-Looking
Information and Other Company Information
This news release includes forward-looking information
and forward-looking statements (collectively, "forward-looking
information") with respect to the Company and these other companies
and within the meaning of Canadian securities laws. Forward looking
information is typically identified by words such as: believe,
expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future
events. This information represents predictions and actual events
or results may differ materially. Forward-looking information may
relate to the Company's future outlook and anticipated events or
results or those of these other companies and may include
statements regarding the Company's financial results, future
financial position, expected growth of cash flows, business
strategy, budgets, projected costs, projected capital expenditures,
taxes, plans, objectives, industry trends and growth opportunities
or those of these other companies.
While management considers these assumptions to be
reasonable, based on information available, they may prove to be
incorrect. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company or these other
companies to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to risks associated with
general economic conditions; adverse industry events; marketing
costs; loss of markets; future legislative and regulatory
developments involving the renewable energy industry; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the mining industry generally, the Covid-19 pandemic, recent market
volatility, income tax and regulatory matters; the ability of the
Company or any of these other companies to implement its business
strategies including expansion plans; competition; currency and
interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings
on SEDAR and those of these other companies, or equivalent public
filings for a more complete discussion of all applicable risk
factors and their potential effects, copies of which may be
accessed through the Company's profile page at
www.sedar.com.
SOURCE Electric Royalties Ltd.