VANCOUVER, Oct. 19, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties"
or the "Company") is pleased to announce the signing of a
letter of intent with Scandinavian Resource Holdings ("SRH") and
Global Energy Metals Corp. (TSX-V: GEMC) to acquire a 1% net
smelter revenue royalty (the "1% NSR") 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").
Rana Nickel Royalty Acquisition Highlights
- Includes the past producing Bruvann Ni-Cu-Co mine that shut
down in 2002 due to low nickel prices, which has significant
remaining historical resources.
- Located adjacent to main north-south highway and in an area
with a long history of mining and skilled manpower.
- Available 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.
Rana Nickel Project Overview
The Rana Nickel Project
is located on the Ofoten Fjord in Northern Norway and is ice-free year-round.
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. The mineralization is reported to be
open in several directions.
The estimate was obtained from a report prepared by the
Norwegian Geological Survey ("NGU"). 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 estimates as current mineral
resources and the Company is not treating them as current.
Bruvann is located 2 km away from a shipping dock with an
existing conveyor connecting the mine site with dock facilities.
Mine roads and power facilities as well as some of the mine
buildings have been maintained and the main north-south highway in
the region crosses the property.
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1 The
past production and historical estimate for the Rana Project is
reported in 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.
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Terms
Electric Royalties is acquiring the 1% NSR on
the Rana Nickel Project for 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 noted
herein is subject to completion of due diligence, approval of the
TSX Venture Exchange and other customary conditions.
Brendan Yurik, CEO of Electric
Royalties commented, "We are very pleased to add the Rana 1%
NSR to our royalty portfolio as it represents our first exposure to
nickel. Furthermore, we are excited about the potential
of the mine's restart as well as the prospectivity of the
surrounding land package. The mine was shut down in 2002 due
to low nickel prices which averaged less than $4/lb during its operation. Nickel prices
are more than double what they were when the mine shut down.
Given the projects excellent jurisdiction, good
infrastructure and available skilled workforce we believe that Rana
has excellent potential to help supply the nickel required to
transition the world away from fossil fuels and toward a
decarbonized global economy."
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 17 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.