Electric Royalties Announces Drawdown Under Convertible Credit Facility

Electric Royalties Announces Drawdown Under Convertible Credit

Facility

V ANCOUVER, BC / ACCESSWIRE / November 26, 2024 / Electric Royalties Ltd.

(TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") announces that it has

elected to draw down C$3,050,000 (the "Drawdown") under its C$10,000,000 amended and

restated convertible credit facility with Gleason & Sons LLC (the "Lender") dated February 16,

2024 (the "Credit Facility") to partially fund the cash payment for the acquisition of a 0.75%

Gross Revenue Royalty on the producing Punitaqui copper mine in Chile ("Punitaqui GRR")

(see Electric Royalties' news release dated November 22, 2024).

Loans drawn under the Credit Facility bear interest ("Interest") at a floating rate (United States

Secured Overnight Financing Rate as published by the New York Federal Reserve ("SOFR") +

7%), with a maximum interest rate of 12.5%, with Interest payments capitalized into the

principal amount and due at the maturity date (the "Maturity Date") of January 12, 2028. Prior to

the Maturity Date, on at least 10 days' prior written notice to the Company and subject to all

required TSX Venture Exchange (the "TSXV"), approvals having been obtained, the Lender has

the right to convert all or any portion of the outstanding principal amount of the Credit Facility

and accrued and unpaid interest into the Company's common shares. Any outstanding principal

amount with respect to a drawdown under the Credit Facility will be converted at a conversion

price equal to the greater of: (i) C$0.50; (ii) a 100% premium above the 30-day volume weighted

average trading price of the common shares of the Company on the TSXV at the time of such

drawdown; and (iii) the minimum price acceptable to the TSXV , per common share of the

Company, subject to adjustment as provided in the convertible note evidencing such drawdown.

Any accrued and unpaid interest may be converted at conversion price equal to the Market Price

(as defined under the TSXV's Policy 1.1) at the time of settlement.

The Credit Facility is a "related party transaction" within the meaning of Multilateral Instrument

61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The

Credit Facility is exempt from the valuation requirement of MI 61-101 by virtue of the

exemption contained in section 5.5(b) as the Company's common shares are not listed on a

specified market. The Company received disinterested shareholder approval of the Credit

Facility at the Company's special meeting of shareholders held on March 19, 2024 in accordance

with MI 61-101.

Upon and subject to closing of the Punitaqui GRR acquisition, the Company intends to grant the

Lender security in the Punitaqui GRR, and has also determined to grant the Lender security in its

1% Gross Metal Royalty on vanadium production from the Mont Sorcier Project in Québec, in

each case in accordance with the Credit Facility and associated security agreement.

The Drawdown is subject to completion of documentation, the approval of the TSXV , and other

customary closing conditions.

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 and

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 fuel the electric revolution.

Electric Royalties has a growing portfolio of 40 royalties in lithium, vanadium, manganese, tin,

graphite, cobalt, nickel, zinc and copper across the world. 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 toward a decarbonized global economy.

For further information, please contact:

Brendan Yurik

CEO, Electric Royalties Ltd.

Phone: (604) 364‐3540

Email: [email protected]

https://www.electricroyalties.com/

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. This news release includes information regarding other companies

and projects owned by such other companies in which the Company holds a royalty interest,

based on previously disclosed public information disclosed by those companies and the

Company is not responsible for the accuracy of that information, and that all information

provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information

and Other Company Information. 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

projected future production, 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.

Although the Punitaqui Project is a past producer with significant infrastructure still in place,

the projected production and production decision by Battery Mineral Resources is not based on a

feasibility study of mineral reserves demonstrating current economic and technical viability of

the Punitaqui Project and furthermore Electric Royalties is not aware of any preliminary

economic assessment or other study having been completed in respect of the projected

production or production decision by Battery Mineral Resources with respect to the Punitaqui

Project. As such, there is a higher degree of risk and uncertainty associated with the production

decision, including increased uncertainty of achieving any particular level of production or

recovery of minerals or the cost of such production or recovery. Historically, projects that are

not based on a feasibility study have a much higher risk of economic and technical failure. There

is no guarantee that production will begin as anticipated or at all or that anticipated production

costs will be achieved. A failure to commence or maintain production at the Punitaqui Project

would adversely impact Electric Royalties' potential future cash flow and profitability.

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, 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 sedarplus.ca and at otcmarkets.com.

SOURCE: Electric Royalties Ltd.