Electric Royalties Closes Zonia Copper Royalty Acquisition
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ELECTRIC ROYALTIES CLOSES ZONIA COPPER ROYALTY ACQUISITION
VANCOUVER, BRITISH COLUMBIA – September 6, 2022 – Electric Royalties Ltd. (TSXV: ELEC) (OTCQB:
ELECF) (“Electric Royalties” or the “Company”) is pleased to announce closing of the previously
announced acquisition (see Electric Royalties’ news release dated June 13, 2022) of a 0.5% gross revenue
royalty ("GRR") on the Zonia Copper Oxide Project in Arizona, USA (the "Zonia Project" or "Zonia") with
World Copper Ltd. (TSX.V: WCU) (OTCQB: WCUFF) (FRA: 7LY0) (“World Copper”) in exchange for
C$1,550,000 cash and 2,000,000 common shares of the Company (the “Transaction”). The Company has
the right, for a period of 15 months after closing of the Tran saction, to acquire a further 0.5% GRR on
the Zonia Project for C$3,000,000 cash consideration. In addition, the Company has an option to acquire
a 1% GRR on the Zonia Norte deposit, adjacent to the Zonia Project, for C$3,000,000 cash, at any time
during a period of 24 months from the date that World Copper (i) obtains an initial technical report in
respect of the Zonia Norte deposit which is prepared in accordance with National Instrument 43-101 and
contains an estimate of Inferred Mineral Resources , and ( ii) delivers a copy of such report to Electric
Royalties.
The Zonia Copper Oxide Project in central Arizona was held under private ownership for almost 100 years
and has undergone extensive historical exploration, metallurgical studies and mine development
planning and production . Much of the mineralized area was pre -stripped during previous open -pit
mining operations starting in 1966 and 17 million tons were mined with 7 million tons stacked on heap
leach pads, producing cement copper until 1975. The Zonia mineral resource was estimated using more
than 600 holes totaling nearly 50,000 metres1. This high-density drilling allows for more than 73% of the
current resource to be classified in the higher confidence measured and indicated categories, thus
reducing technical risk on the deposit. Only 30% of the property has been investigated by drilling ,
providing considerable opportunity to grow the resource.
World Copper plans to prepare for prefeasibility -level studies to further advance the project toward
production. This includes a program of infill drilling with goals to upgrade Inferred Resources, convert
Measured and Indicated Resources to Mineral Reserves and potentially expand the deposit to the
northeast. The program also includes geotechnical and condemnation drilling. For more information
about the Zonia Project, refer to Electric Royalties’ June 13, 2022 news release.
The Company has issued 2,000,000 common shares of the Company and made a cash payment of
C$1,550,000 (gross). The 2,000,000 common shares will be subject to a hold period of 6 months.
David Gaunt, P.Geo., a qualified person who is not independent of Electric Royalties, has reviewed and
approved the technical information in this release.
1 Preliminary Economic Assessment NI 43 -101 technical report titled "ZONIA COPPER PROJECT, NI 43 -101 Technical Report,
Yavapai County, Arizona USA", effective March 22, 2018 and dated April 17, 2018, prepared by Global Resource Engineering
Ltd. and posted under Cardero Resource Corp.’s profile at www.sedar.com.
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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 20 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.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
www.electricroyalties.com
Scott Logan
Renmark Financial Communications Inc.
Phone: (416) 644-2020 or (212) 812-7680
Email: [email protected]
www.renmarkfinancial.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 forw ard-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 responsib le for the accuracy of that information,
and that all infor mation 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, postula te 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
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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 involv e 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, recen t 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.