Electric Royalties Closes Rana Nickel Royalty Acquisition
ELECTRIC ROYALTIES CLOSES RANA
NICKEL ROYALTY ACQUISITION
VANCOUVER, BC
,
Jan. 27, 2022
/CNW/ -
Electric Royalties Ltd.
(TSXV: ELEC) (OTCQB:
ELECF)
("Electric Royalties" or the "Company")
is pleased to announce closing of the previously
announced
Rana Nickel Royalty
acquisition (see news releases dated
October 19, 2021
and
December 16, 2021
) with Scandinavian Resource Holdings ("SRH") and Global Energy Metals Corp.
(TSX-V: GEMC) ("GEMC") to acquire a 1% net smelter revenue royalty on the Rana nickel project
(the "Rana Project" or "Rana"). The Rana Project comprises four exploration licenses totaling 25
square kilometers in the Råna mafic-ultramafic intrusion in
Northern Norway
, including the past
producing Bruvann Nickel mine.
The Company has issued 1,800,000 common shares of the Company ("Consideration Shares") to
Casper Peterson
,
Jeroen Van Gool
,
Martin Blakeman
and Winton Willesee (as nominees for SRH)
and made a cash payment of
$90,000
to SRH, issued 200,000 Consideration Shares to GEMC and
made a cash payment of
$10,000
to GEMC. 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.
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.
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For further information:
Brendan Yurik Tel: (604) 364
3540, [email protected],
www.electricroyalties.com
CO: Electric Royalties Ltd.
CNW 07:45e 27-JAN-22