Electric Royalties Closes Kenbridge Nickel Royalty Acquisition
Electric Royalties Closes Kenbridge Nickel Royalty Acquisition
VANCOUVER, BC / April 27, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF)
("Electric Royalties" or the "Company")is pleased to announce the closing of the previously
announced acquisition of a 0.5% gross revenue royalty ("GRR") on certain mining claims,
mining leases and mineral tenures comprising the wholly-owned Kenbridge Nickel Project in
northwest Ontario, Canada (the "Kenbridge Project" or "Kenbridge") with Tartisan Nickel Corp.
(CSE: TN) ("Tartisan") in exchange for C$500,000 cash and 2,500,000 common shares of the
Company (the "Transaction").
The Company has the right, for a period of 18 months from closing of the Transaction, to acquire
a further 0.5% GRR on the Kenbridge Project for C$1,750,000 cash consideration. In addition,
the Company has an option to acquire a 1% GRR on the mining claims, mining leases and
mineral tenures comprising the Kenbridge North Nickel Project (the "Kenbridge North Project"
or "Kenbridge North"), approximately 2.5 km north of the Kenbridge Nickel Deposit, for
C$1,000,000 cash, at any time during a period of 24 months from the date that Tartisan publishes
an initial technical report in respect of the Kenbridge North Project which is prepared in
accordance with National Instrument 43-101 and which contains an estimate of Inferred Mineral
Resources.
The acquisition marks the Company's second nickel royalty as it focuses on diversifying its
portfolio across a suite of nine clean energy metals. Nickel, a designated critical mineral by the
United States, is a crucial component in electric vehicle batteries, and is projected to grow in
demand by over 60% over the next two decades to meet the goals of the Paris Agreement1.
See Electric Royalties' March 6, 2023 news release for more details on the Kenbridge Project.
The convertible credit facility (the "Credit Facility") referenced in the Company's April 20, 2023
and April 21, 2023 news releases, which was utilized in part to fund the cash portion of the
payment to acquire the Kenbridge royalty, 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 and from the minority shareholder approval requirements of MI 61-
101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market
value of credit facility does not exceed 25% of the Company's market capitalization.
1 https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-
summary
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 feed the electric revolution.
Electric Royalties has a growing portfolio of 22 royalties, including two royalties that currently
generate 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.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
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
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.