Electric Royalties Completes Drawdowns Under Convertible Credit Facility
Electric Royalties Completes Drawdowns Under Convertible Credit
Facility
VANCOUVER, BC / November 8, 2023 / Electric Royalties Ltd.
(TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") announces that
further to its October 19, 2023 news release, the Company has completed a C$500,000
drawdown (the "Drawdown") under the C$5,000,000 convertible credit facility (the "Credit
Facility") with Gleason & Sons LLC (the "Lender") for working capital.
The Company also announces that further to its September 27, 2023 news release, it has
completed the C$1,050,000 drawdown (the "Previous Drawdown") under the Credit Facility
with the Lender to fund the cash payment to acquire the additional 0.5% GRR on the Bissett
Creek project, as well as its associated transaction costs.
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"). At the discretion of the
Lender, loaned amounts plus accrued Interest are convertible into common shares of Electric
Royalties as follows: (a) for the principal amount of loans at the greater of C$0.50; a 100%
premium above the 30-day VWAP of Company's shares on the TSX Venture Exchange (the
"TSXV") at the advance; and the minimum price acceptable to the TSXV, per share (the
"Conversion Price"); and (b) for Interest at the Market Price (as defined under TSXV policy 1.1)
at the time of settlement, subject to the Market Price not being less than the Conversion Price
without prior TSXV approval, per share. Disinterested shareholder approval will be required for
any Conversion that results in the Lender holding more than 20% of the outstanding voting
shares of the Company.
The Conversion Price for the Drawdown is C$0.50 and the Conversion Price for the Previous
Drawdown is C$0.50, and as a result a total of 1,000,000 common shares and 2,100,000 common
shares of the Company are issuable on conversion thereof, respectively.
The Maturity Date of the Drawdown and the Previous Drawdown under the Credit Facility is
January 12, 2026. The Drawdown and the Previous Drawdown are subject to final TSXV
approval.
The Credit Facility was considered to be a "related party transaction" within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions
("MI 61-101") at the time the Credit Facility was agreed to. The Credit Facility was 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 did not exceed 25% of the
Company's market capitalization.
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 22 royalties. 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, 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
properties in which it holds 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 properties 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 properties to implement their business strategies including expansion plans; the optioned
properties remaining under option; the optionees making option payments as and when due
under the relevant option agreements; the lithium properties not being successfully explored and
developed; 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.