Electric Royalties Provides Asset Update
Electric Royalties Provides Asset Update
VANCOUVER, BC
,
Jan. 22, 2021
/CNW/ -
Electric Royalties Ltd.
(TSXV: ELEC)
("Electric
Royalties" or the "Company")
is pleased to provide an asset update on its current royalty portfolio
including the Financial Investment Review Board Approval for the acquisition of three previously
announced cobalt royalties in Australia.
Authier Lithium Royalty, 0.5% Gross Revenue Royalty ("GRR"), operated by ASX listed
Sayona Mining Ltd ("Sayona")
AUTHIER
ADVANCES AS CENTRE OF LITHIUM HUB (see Sayona news release
August 21, 2020
)
New field work underway at Sayona's Authier Lithium Project, as Sayona progresses various
environmental and geotechnical studies.
Flagship project to form key part of the Abitibi lithium hub, as Sayona advances its Québec
expansion to service growing North American, European and global battery market.
Lodgement of the
Authier
project's environmental impact statement (EIS) in
January 2020
and
subsequent feedback from Québec's Ministry of the Environment and the Fight against Climate
Change (MELCC) (see Sayona news release
April 9, 2020
)
Sayona has awarded all critical follow–up work contracts to address feedback on the EIS,
including:
geotechnical surveys by leading Canadian consulting engineering firm BBA.
collection of additional soil samples by consulting engineers Norinfra.
wetlands inventories by environmental consultants
Del Degan
& Massé.
inventories of various plants of interest to the Council of the First Nation Abitibiwinni
(Pikogan).
non–timber forest products together with fish, sediments and water quality in Lake
Kapitagama by Aki Resources, a First Nations contractor in partnership with Desfor.
REVISED
AUTHIER
DFS (see Sayona news release
November 11, 2019
).
A revised definitive feasibility study for the
Authier
project was completed in
November 2019
.
NAL BIDDING PROCESS RELAUNCHED, CLOSING
JANUARY 2021
(see Sayona news release
November 4, 2020
)
Québec's Superior Court approves monitor's request to extend the North American Lithium
(NAL) bidding process to closing date of
January 22, 2021
; bidding process relaunched with all
interested parties including Sayona to resubmit bids.
Sayona's bid is backed by a world–class advisory team, experienced in every aspect of a
successful turnaround from operational experience to engineering, environmental and financial
know–how, including former NAL management.
Sayona's bid for NAL has the unique competitive advantage of being able to combine lithium
produced from Sayona's nearby Authier Lithium Project with the lithium at NAL, facilitating a
significant improvement in plant performance and economics.
AUTHIER
EIS STUDIES ADVANCE AS EV SECTOR ACCELERATES (see Sayona news release
December 21, 2020
)
Authier Lithium Project's environmental studies progress, with completion of response to
Québec Government queries.
Pending regulatory approval, which is anticipated in 2021, construction could start as early as
2022 amid the continued acceleration of lithium demand from
North America
and globally.
Sayona anticipates a public hearing under the 'BAPE' (bureau d'audiences publiques en
environnement) process will be authorised before
June 2021
and scheduled for the summer,
culminating in final approval by the Council of Ministers.
PIEDMONT
LITHIUM INVESTS IN SAYONA; PARTNERSHIP TO BOOST QUÉBEC
PROJECTS (see Sayona news release
January 11, 2021
)
Leading U.S.–based lithium corporation, Piedmont Lithium (ASX:PLL; Nasdaq:PLL) to invest up
to
US$12 million
to become strategic investor and major offtake partner in Sayona, acquiring
19.9% of Sayona Mining and 25% of Sayona Québec.
Partnership demonstrates quality of Québec assets and Sayona's vision of creating a lithium
hub in Abitibi, supplying North American and international battery markets.
Piedmont
has also agreed to a binding offtake arrangement under which it will acquire up to
60,000 tons per annum of spodumene concentrate or 50% of Sayona Québec's production,
whichever is greater.
The supply agreement is for Sayona Québec's life–of–mine operations and is based on market
pricing with a minimum price of
US$500
/t and maximum price of
US$900
/t on a delivered basis
to
Piedmont's
planned lithium hydroxide plant in
North Carolina
.
Mont Sorcier Vanadium Royalty, 1% GRR, operated by TSX-V listed Vanadium One Iron Corp.
("Vanadium One")
VANADIUM ONE IRON FILES TECHNICAL REPORT FOR THE PRELIMINARY ECONOMIC
ASSESSMENT FOR THE MONT SORCIER IRON AND VANADIUM PROJECT (see Vanadium One
news release
April 9, 2020
)
Annual production targeted at approx. 5.0 million tonnes of high grade, low impurity, iron concentrate
grading ~65% iron with 0.6% V2O5 per tonne of concentrate
Initial Capex
C$457.5 million
Payback period of 3.0 years
Current Mineral Resource Estimate supports a potential mine life of 37 years
Total Site Operating costs of
C$52.38
/t of concentrate over potential LOM
Upside potential from resource expansion and the potential to expand production
*Based on long term price of
US$92
/t Iron Concentrate and
US$7.25
/lb V205 (NI 43-101 Technical
Report available on Sedar)
VANADIUM ONE COMPLETES DRILL PROGRAM AT ITS MONT SORCIER,
QUEBEC
IRON
ORE-VANADIUM PROJECT (see Vanadium One news release
November 2, 2020
)
Program designed to significantly increase tonnage.
Diamond drilling component of the program has been completed ahead of schedule with 10
holes drilled for a total of 3,414 metres.
Drilling targeted the eastern extension of the North Zone and covered more than 1.5 kilometers
along strike as planned.
Battery Hill Manganese Royalty, 2% GRR, operated by TSX-V listed Manganese X
("Manganese X")
MANGANESE X UPDATES
WOODSTOCK
NI 43-101 TECHNICAL REPORT: PROGRESSING
TOWARDS A PRELIMINARY ECONOMIC ASSESSMENT (see Manganese X news release
July
16, 2020
)
Completed an updated National Instrument ("NI") 43-101 Technical Report for its 100% owned
Woodstock Battery Hill Manganese Property located in
New Brunswick
.
The updated Technical Report, dated
June 30, 2020
, includes exploration work carried out since
2016.
A copy of the Report is available on the Manganese X's website and on SEDAR.
Diamond drilling has been completed over a 1.8 kilometer strike length of the prospective
manganese occurrence trend. Most holes intercepted significant grades and widths of
manganese mineralization such as 10.75% Mn over 52.6 meters (core length) in SF-16-05,
12.96% Mn over 32.85 meters (core length) in SF-16-08 and 9.39% Mn over 74.0 meters in
SF-17-18.
MANGANESE X ENERGY AND KEMETCO RESEARCH IMPROVE FLOWSHEET OPTIMIZATION
TO PRODUCE HIGH GRADE BATTERY MATERIAL FOR THE EV AND STORED ENERGY
SPACE (see Manganese X news release
September 11, 2020
)
Manganese X completed phase 1 flowsheet optimisation yielding manganese sulphate with a
purity exceeding 99.95% with low levels of base and alkali metals using material from its
Battery Hill property. This has been a transformational achievement, demonstrating its resource
material which can be compliant with electric vehicles and other requirements.
Various Phase 2 bench scale metallurgical bulk tests have been conducted, and results to
optimize leaching, neutralization and solid-liquid separation were reported as very positive.
Manganese X continues to advance the development of a workable extraction process and
flowsheet to further reduce purification steps, which, if successful, could lead to major cost
benefits.
MANGANESE X ENERGY ANNOUNCES COMPLETION OF DRILLING PROGRAM ON BATTERY
HILL PROJECT (see Manganese X news release
November 30, 2020
)
28 holes totaling 4,509 meters
Depth per hole ranged between 77 to 233 meters
MANGANESE X RECEIVES METALLURGICAL RESULTS DEMONSTRATING HIGH RECOVERY
RATE, IMPROVED EFFICIENCY AND ECONOMICS FOR EV BATTERY USAGE (see Manganese
X news release
January 14, 2021
)
In Phase One, using a series of bench-scale leach, purification, and crystallization processes,
Kemetco successfully produced a high purity manganese sulphate product with a purity of up to
99.95%. This has been considered a transformational achievement, demonstrating the Battery
Hill mineralization can be compliant and suitable for battery manufacturing use in electric
vehicles, energy storage systems and other high-tech applications.
Phase Two of Kemetco's overall testing consisted of the development of a more efficient,
workable extraction process and flow sheet for the generation of high-grade manganese
sulphate. The most recent bench-scale tests consisted of defining suitable unit operations for
leach extraction, solid-liquid separation, primary purification, and crystallisation upgrading.
Kemetco notes the most recent results are highly significant and very encouraging as they
provide a potential route to eliminate a major step in the purification process that would result in
major cost benefits as well as an increase in purification efficiency. Significant results include:
The significant achievement of an overall recovery rate of 85%.
Eliminating purification processes that will significantly reduce overall costs.
Improved purification results with extremely low levels of base and alkali metal
contaminants.
Enhanced opportunities for commercialization.
Bissett Creek Graphite Royalty, 1% GRR, operated by TSX-V listed Northern Graphite Corp.
("Northern Graphite")
METALLURGICAL TESTING CONFIRMS PROCESS PLANT COST SAVINGS (see Northern
Graphite news release,
July 23, 2020
)
Comprehensive metallurgical testing carried out at SGS Lakefield has validated changes
designed to simplify the flow sheet for the Bissett Creek Project and to reduce capital and
operating costs.
Testing indicated that the new flowsheet will increase average concentrate purities from 94.5%
to 97.2 % with a small decline in recoveries (from 94.7 to 92.4 %) and large flake yields.
Due to the premium paid for higher purity concentrates, the net effect will be an increase of
approximately
US$100
/tonne in estimated concentrate sales prices.
The revised flowsheet uses semi-autogenous grinding alone followed by rougher flotation and
two stages of polishing and cleaner flotation. A large regrind mill, small polishing mill, cleaner
flotation circuit and sulphide tailings regrind circuit have all been removed.
As a result,
Bissett Creek
is expected/forecast to have one of the simplest flow sheets and
lowest costs per tonne of ore mined and processed in the industry.
The deposit also has a low degree of weathering and little variability, both of which have
created metallurgical challenges for other projects.
Low costs combined with one of the best flake size distributions will result in
Bissett Creek
being one of the highest margin graphite deposits in the world with a very high percentage of
L/XL/XXL flake.
The project has a full Feasibility Study and a Preliminary Economic Assessment which
contemplates doubling production after three years of operation.
Permitting is well advanced and Northern Graphite is positioned to make a construction decision
subject to financing.
Millennium Project Cobalt Royalty, 0.5% GRR, operated by TSX-V listed Global Energy Metals
Corp. ("Global Energy Metals")
FIRB APPROVAL
The Australian Financial Investment Review Board approval granted for the sale of the cobalt
royalties to Electric Royalties Ltd.
EXCEPTIONAL COBALT, COPPER AND GOLD RECOVERY RESULTS HAVE BEEN RECEIVED
FROM ITS MILLENNIUM PROJECT METALLURGICAL TEST WORK (see Global Energy Metals
news release dated
April 6, 2020
)
High grade separate copper and cobalt concentrate can be readily floated from samples from
the Millennium deposit.
Excellent float recoveries of 93% cobalt (Co), 93% copper (Cu), and 80% gold (Au) into
concentrates.
Cobalt Blue Process successfully treated the cobalt concentrate for extraction of 90% Co, 95%
Cu with 90% of the Au extracted in two steps:
10% in Cobalt Blue Process followed by 80% in cyanide leach of the Cobalt Blue Process
residue.
Cobalt Blue recommends that a Preliminary Economic Assessment be completed, to evaluate
the total project costs and determine if the project should be advanced to a Pre-Feasibility
Study ("PFS").
Brendan Yurik
, CEO of Electric Royalties states, "I'm excited to give our first corporate asset
update as a newly public royalty company. The operators of our royalty assets have made
significant progress over the past year and are moving their projects steadily onwards to
production. The advancement of the projects increases the value of our royalties without requiring
us to outlay additional capital and is one of the most overlooked benefits of the royalty business
model. I look forward to adding more royalties to our portfolio over the next few months and what
2021 will bring for our current portfolio".
Investors are also advised that the updated
January 2021
Corporate Presentation is now available
on the Company website at
www.electricroyalties.com
.
David Gaunt
, P.Geo., a qualified person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
For further details on Electric Royalties, please visit
www.electricroyalties.com
, contact us at (604)
639-9200 or send us an email at
.
On Behalf of the Board of Directors
Brendan Yurik
Chief Executive Officer
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 & 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 portfolio of 11 royalties and plans to focus predominantly on acquiring
royalties on advanced stage and operating projects to build a diversified portfolio located in
jurisdictions with low geopolitical risk.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statements Regarding Forward-Looking Information
and Other Company
Information
This news release includes
information regarding other companies based on previously disclosed
pubic information disclosed by those companies and the Company is not responsibility for the
accuracy of that information, and that all information provided herein is subject to this FLI
cautionary. This news release also includes
forward-looking information and forward-looking
statements (collectively, "forward-looking information") with respect to the Company and these
other companies and 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 or results or those
of these other companies and may include statements regarding the Company's 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 or those of these other companies.
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 other companies 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 any of these other
companies to implement its 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 and those of these other
companies, or equivalent public filings 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
.
SOURCE
Electric Royalties Ltd.
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For further information:
Investor Contact: Mars Investor Relations, TF +1 (866) 697-0028,
www.marsinvestorrelations.com ; Electric Royalties: Electric Royalties Ltd., Brendan Yurik, Tel:
(604) 364-3540, [email protected]; www.electricroyalties.com
CO: Electric Royalties Ltd.
CNW 07:45e 22-JAN-21