Elemental Royalties Announces Shares FOR Debt Transaction
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
ELEMENTAL ROYALTIES ANNOUNCES SHARES FOR DEBT TRANSACTION
August 4, 2020 – Vancouver, BC: Elemental Royalties Corp. (“Elemental” or “the Company”) (TSX-V: ELE)
announces that it has entered into a settlement agreement with Tembo Mining Capital Fund LP (“Tembo”) that
will result in the settlement of C$115,494 in debt (the “Debt”) in exchange for the issuance by the Company of
65,996 common shares (the “Settlement Shares”). The Debt was incurred pursuant to a bridge loan made by,
among others, Tembo to the Company (then Fengro Industries Corp.) in March 2019 (the “Facility”).
The Settlement Shares will be issued at a deemed price of CAD$1.750015, being the market price at the time of
the agreement, to settle a total debt of C$115,494 pursuant to the Facility. This Debt is comprised of the
principal debt amount of C$100,000, an establishment fee of C$5,000 and interest of C$10,494, being all of the
obligations owed by Elemental to Tembo under the terms of the Facility. The issuance of the Settlement Shares
remains subject to the approval of the TSX Venture Exchange. When issued, the Settlement Shares will be subject
to a statutory hold period expiring on the date that is four months and one day after their issue.
Outstanding obligations of CDN$3,128,218.60 owing to Tembo under a US$2 million convertible loan facility
previously established by Elemental Royalties Limited (now a wholly owned subsidiary of the Company) were
converted into common shares of the Company in connection with the closing of the recently completed reverse
takeover transaction at a price of C$1.30 per common share resulting in the issuance of 2,406,322 common
shares to Tembo. For further information on the convertible facility, please refer to the Filing Statement posted
to Elemental’s issuer profile on SEDAR at www.sedar.com.
About Elemental:
Elemental is a gold focused royalty company with a portfolio of five royalties over producing assets spanning
Burkina Faso, Chile, Mexico, Kenya and Western Australia. The portfolio is heavily weighted towards precious
metals and producing royalties, providing a diversified foundation of revenue from the outset, while minimising
shareholder dilution.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and Director
T: +44 (0)203 983 7040
Forward-Looking Statements
This press release may contain certain forward-looking information and statements (“forward-looking information”) within
the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue",
"estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking
information. Actual results and developments may differ materially from those contemplated by these statements. Elemental
undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of Elemental, its
securities, or financial or operating results (as applicable). Although Elemental believes that the expectations reflected in
forward-looking information in this press release are reasonable, such forward-looking information has been based on
expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to
numerous risks and uncertainties, certain of which are beyond Elemental’s control. The forward-looking information
contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof.
Elemental disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any
forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX
Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.