VANCOUVER, BC, Dec. 16, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties" or
the "Company") is pleased to announce the signature of the
definitive purchase agreement of the previously announced
Rana Nickel Royalty acquisition (see
news release dated October 19, 2021)
with Scandinavian Resource Holdings ("SRH") and Global Energy
Metals Corp. (TSX-V: GEMC) to acquire a 1% net smelter revenue
royalty on four exploration licenses totaling 25 square kilometers
in the Råna mafic-ultramafic intrusion in Northern Norway, including the past producing
Bruvann Nickel mine (the "Rana Nickel Project" or "Rana").
The Company will issue a total consideration of 2,000,000
common shares of the Company ("Consideration Shares") and
$100,000 cash. The Consideration
Shares will be subject to a voluntary escrow lock-up agreement
which provides that 50% of the common shares will be subject to a
hold period of 4 months and one day, 25% for 8 months and the
remaining 25% for 12 months. The transaction remains subject to
customary closing conditions including TSX-V approval.
Rana Nickel Royalty Acquisition Highlights
- The Rana Nickel Project is located on the Ofoten Fjord in
Northern Norway which is ice-free
year-round. The area is well serviced by the country's main highway
and benefits from nearby international airport facilities.
- The project includes the past producing Bruvann Ni-Cu-Co mine
which was in production from 1989 until 2002 and processed 8.2
million tonnes of ore at an average grade of 0.52% Ni, 0.1% Cu and
0.02% Co1.
- A historical estimate of the remaining resource is 9.15 million
tonnes at grades of 0.36% Ni, 0.09% Cu and 0.01% Co above a cut-off
of 0.3% Ni1. No classification of the estimate was
reported. The estimate is historical in nature and does not qualify
as mineral resources under CIM Definition standards and NI 43-101.
A qualified person under has not done sufficient work to classify
the estimate as current mineral resources and the Company is not
treating it as current.
- Available maintained mine infrastructure includes power, roads,
and conveyor from mine site to existing port facilities.
- Large historical drill database of 3,845 holes which
demonstrates compelling near mine exploration potential.
- Underexplored property with demonstrated exploration potential
and near mine exploration potential with the mineralization
reported to be open in several directions.
_____________________
|
1 The past
production and historical estimate for the Rana Project and the
figures below are derived from the government report: Carl Olaf
Mathiesen and Rognvald Boyd, 2017: History of exploration of the
nickel resources of the Råna Intrusion, Nordland, Norway, NGU
Report 2017.31, available at
https://www.ngu.no/upload/Publikasjoner/Rapporter/2017/2017_031.pdf
.
|
|
Rana Nickel Royalty Development Update
Electric
Royalties is also pleased to announce that Metals One plc has
signed a definitive term sheet to acquire 90% of the Rana Nickel
Project through the acquisition of SRH with plans to complete an
AIM listing in Q1 2022. As part of the agreement, Metals One plc
will be committing to a work program within the first 12 months
with plans to release an updated resource within the next 12 to 24
months.
Metals One plc is an exciting new battery minerals exploration
company focused on assets in the Scandinavian region and on the
doorstep of the burgeoning European EV market. More detail on
Metals One plc can be found at https://metals-one.com.
Rana Nickel Project Exploration Upside
All of the
mineral occurrences within the 4 mining licenses at Råna are hosted
in the 70km2 Råna mafic-ultramafic intrusion. The
most significant of these occurrences is the formerly producing
Bruvann Nickel Mine which was operated from 1989 to 2002 by Nickel
og Olivin AS in association with Outokumpu OY.
Significant underground resources remain at Bruvann and it is
the most important asset on the property. A report tabled by
the NGU in 2007 stated that "…it is unlikely that the Bruvann
mineralization is the richest in the complex." Recent
exploration work guided primarily by geophysics elsewhere within
the licenses has shown good potential to discover additional
nickel-copper deposits.
Near Mine Exploration Potential
Several areas
adjacent to mine workings offer good potential to discover
additional resources. The most prospective of which are shown
in the figures as Areas 1, 2, 3.
Area 1 occurs below existing workings in the central part of the
deposit.
Area 2 is in the northern part of the deposit, where the
mineralization is very poorly defined but where there are several
drill holes which indicate the potential for a continuation of the
mineralization. As in Area 1, this part of the deposit is
well accessed by multiple mine levels facilitating access.
Area 3 lies on the west side of the deposit. As in Area 2,
mining has occurred to a point, but drilling strongly indicates a
continuation of the mineralization, and the area is accessible from
several existing levels.
Brendan Yurik, CEO of Electric
Royalties commented, "Underexplored historically producing
nickel mines like Rana in tier 1 jurisdictions are an excellent
place to search for future nickel supply to fill the looming supply
/ demand gap in an ESG friendly way and with less risk than
greenfield projects.
More than $150 million has been
raised in 2021 by operators of our royalty assets to advance the
projects. With Metals One plc committing to advance the Rana
Project in 2022, we're looking forward to the results of modern
exploration work as we believe there is lots of upside and value
remaining to be unlocked at the Rana Nickel Project."
David Gaunt, P.Geo., a Qualified
Person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
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 has a growing portfolio of 18 royalties,
including one royalty that currently generates revenue. The
Company is focused predominantly on acquiring royalties on advanced
stage and operating projects to build a diversified portfolio
located in jurisdictions with low geopolitical risk, which offers
investors exposure to the clean energy transition via the
underlying commodities required to rebuild the global
infrastructure over the next several decades towards a decarbonized
global economy.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange), nor any other regulatory body or securities
exchange platform, 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 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 and may include statements
regarding the 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 of the Company
and the projects in which it holds royalty interests.
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
projects 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 the owners of these projects to implement their 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 as well as other information filed with the OTC Markets
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 and at
otcmarkets.com.
SOURCE Electric Royalties Ltd.