Electric Royalties Provides Seven Updates on Its Lithium, Graphite, Copper, Nickel, and Tin Royalties
Electric Royalties Provides Seven Updates on Its Lithium, Graphite,
Copper, Nickel, and Tin Royalties
VANCOUVER, BC / May 28, 2024 / Following the recently announced acquisition of an
Ontario lithium royalty and option package comprising a portfolio of 50 assets (see news release
dated May 1, 2024), Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric
Royalties" or the "Company") is pleased to provide the following update on other royalties in its
portfolio.
Brendan Yurik, CEO of Electric Royalties, commented: "With another series of positive
developments across our royalty portfolio, we are excited to see further confirmation that we
have selected strong, fast-moving projects. In particular, we are closely following our Penouta,
Authier, and Graphmada royalties as potential catalysts for new, near-term cash flows.
"We are anticipating a decision on the Penouta tin-tantalum mine permit appeal by May 31.
Because production levels increased by 20% year-over-year before the suspension of mining last
November, and with tin prices up over 30% since that time, a resumption in production could
yield important revenue for Electric Royalties.
"Despite a downturn in lithium prices, the joint venture partners at North American Lithium are
committed to ramping up operations, positioning North American Lithium as Quebec's next
major lithium producer. The feasibility study forecasts 33% of production will be sourced from
the Authier deposit1, part of which we hold a royalty on, which could add to our lithium-related
revenue and push us closer to free cash flow generation.
"Greenwing management's renewed focus on bringing their Graphmada graphite mine back into
production is encouraging. Previously the mine operated continuously for over 18 months, and
Greenwing is targeting a return to production at a larger scale, pending financing. This 2.5% net
smelter royalty could significantly boost Electric Royalties' near-term cash flow once
operational.
"As for other key development catalysts paving the way to production, the Zonia copper oxide
project, selected for its relative simplicity and advantageous location in Arizona, is progressing
well. With copper prices at record highs, World Copper management's focus on a feasibility
study should attract more institutional interest, advancing the project towards production.
"Meanwhile, the Graphite Bull graphite project has shown remarkable progress since we
acquired it three years ago. Now moving towards a prefeasibility study, this project exemplifies
the value add of royalties, with all development funded at no cost to Electric Royalties."
Highlights since the Company's previous update on April 2, 2024:
Penouta Tin-Tantalum Mine (1.5% Gross Revenue Royalty) - On March 27, 2024, Strategic
Minerals Europe Corp. (NEO:SNTA)(OTCQB:SNTAF) ("Strategic") reported its fourth quarter
and full-year 2023 financial results. Highlights included record production of 603 tonnes of
primary concentrate in 2023, with the quality of concentrate improving during the year. Fourth-
quarter production halted on October 14, 2023, at 28 tonnes. Strategic also achieved record sales
of 629 tonnes of concentrates and 418 tonnes of contained minerals in 2023, an increase of 20%
and 19%, respectively, compared to 2022. Sales during Q4 2023 amounted to 29 tonnes of
concentrates and 20 tonnes of contained minerals before the temporary suspension of operations.
On May 14, Strategic reported its first quarter 2024 financial results. No production, sales and
revenue were reported due to the suspension of Penouta's operations. Strategic is focused on
maintaining the plant in order to resume operations.
On April 15, Strategic provided an update on the Spanish Court's provisional suspension of
Penouta's section C permit, which it had subsequently appealed. Strategic was notified on April 9
that the court will reach its verdict with respect to the suspension on May 31, 2024.
On May 8, Strategic meticulously disputed accusations from Spanish NGO confederation
Ecologistas en Acción that Strategic's activities impacted a site outside of its mining concession
and announced it "reserves the right to take legal action because of the falsehood of the
accusations made."
Graphmada Graphite Mine (2.5% Net Smelter Royalty) - On April 30, 2024, Greenwing
Resources Ltd. (ASX: GW1) ("Greenwing") announced that the process for attracting strategic
investment in the Graphmada Mining Complex in Madagascar has commenced, with the aim to
re-establish the mine at higher production volumes. Care and maintenance activities continue on
site.
Authier Lithium Project (0.5% Gross Metal Royalty) - On April 4, 2024, Sayona Mining
Limited (ASX: SYA) ("Sayona") announced that following pricing pressure in the lithium
market and a detailed review of the North American Lithium (NAL) operation, joint venture
partners Sayona and Piedmont Lithium have agreed to continue the NAL production ramp-up
towards steady-state production in 2024, with regular reviews of operating costs and market
conditions. Sayona assessed opportunities to optimize production, reduce costs, and preserve
optionality. Sayona plans to integrate concentrate from the nearby Authier Lithium Project, on
part of which Electric Royalties holds a 0.5% gross metal royalty, with NAL.
Graphite Bull Graphite Project (0.75% Gross Revenue Royalty) - On April 29, 2024, Buxton
Resources Limited (ASX: BUX) ("Buxton") announced that clearances have been received from
recent Aboriginal Heritage surveying at the Graphite Bull Project in Western Australia, allowing
for recommencement of drilling in Q2 2024, the aim of which is to upgrade resources and
support a pre-feasibility study. Additional follow-up heritage surveys are planned for later this
year to support future work through 2025 and beyond.
Zonia Copper Oxide Project (0.5% Gross Revenue Royalty) - On May 13, 2024, World
Copper Ltd. (TSX.V: WCU) ("World Copper") announced the formation of a Technical
Advisory Committee to help guide the development of the Zonia copper-oxide deposit in
Arizona, USA, by advising the company on engineering studies, project execution, and the
strategic planning necessary for successful permitting, construction, and ramp-up of the project.
World Copper reports that Committee member Joe Phillips is a senior mining executive and
corporate director who served in senior management roles at Pan American Silver, Coeur
Mining, and Carpathian Gold. He was Chief Operating Officer of Minera Tres Valles in Chile,
where he designed and implemented the upgrade and expansion of its SX-EW copper operation.
Committee member Derek White has more than three decades of experience in the mining and
metals industry, and currently serves as President and Chief Executive Officer of Ascot
Resources; highlights of his career include the development and construction of the Carlota
copper oxide mine in Arizona, Premier gold mine in BC, and the world-class Sierra Gorda
copper mine in Chile.
On May 21, World Copper reiterated its focus on advancing Zonia to a feasibility study,
followed by construction and production. World Copper has adopted a two-phase plan to develop
Zonia towards production within the next three to five years. Phase one would target only the
portion of the project located on private land. Phase two will target copper mineralization located
on non-private land so that it could be permitted for future inclusion into the anticipated mine
plan. To satisfy the parameters of a feasibility study, World Copper has the goal to convert a
major portion of the inferred resources in a prior preliminary economic assessment to indicated
resources during phase one. This would likely entail an infill drilling campaign. Other phase-one
programs include environmental studies, land and water use permits, metallurgical studies, mine
planning, engineering, financing modelling and construction planning.
Phase-two programs include permitting the Bureau of Land Management ("BLM") land (non-
private) that surrounds the Zonia private land, environmental studies, and some exploration
drilling. According to World Copper, the BLM lands are three times the size of the private land
package and have the potential to increase Zonia's copper resources. The phase-two programs are
planned to be initiated in parallel with the phase one activity.
Kenbridge Nickel Project (0.5% Gross Revenue Royalty) - On May 16, 2024, Tartisan Nickel
Corp. (CSE: TN) ("Tartisan") announced that it acquired additional contiguous claims at the
Kenbridge Project in Ontario, Canada. The total property size now consists of 93 contiguous
patents, 153 single cell mining claims and 4 Mining Licenses which in total cover 4,273 hectares.
Tartisan also commenced 2024 baseline study field work which includes aquatic and terrestrial
fieldwork within the project footprint and access road options. These studies, along with baseline
data previously collected, will be used to develop baseline environmental reports to support
provincial and federal reviews, approvals, and permitting for advanced exploration and eventual
mine development.
Chubb Lithium Project (2.0% Gross Metal Royalty) - On April 19, 2024, Burley Minerals
Ltd. (ASX: BUR) ("Burley") announced that four drill holes completed in December 2023 at the
Chubb North prospect at the Chubb Project in Québec, Canada, identified pegmatites north of the
spodumene-bearing Chubb Central pegmatite dyke swarm. Background lithium values suggest
that the granitic pegmatites intersected in these drill holes are more likely related to the parent
source of other lithium-caesium-tantalum pegmatites in the area.
Burley's geochemical consultant recommended that exploration mapping, sampling and, when
warranted, further drilling, should focus on areas south of the completed Chubb North drilling.
Electric Royalties is relying on the information provided by Burley and is unable to verify the
reported drill results.
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 Sayona Mining Limited news release dated April 14, 2023, titled "DEFINITIVE
FEASIBILITY STUDY CONFIRMS NAL VALUE WITH A$2.2B NPV". Electric Royalties is
relying on the information provided by Sayona and is unable to verify the feasibility results.
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 40 royalties in lithium, vanadium, manganese, tin,
graphite, cobalt, nickel, zinc and copper across the world and interests in 32 lithium properties in
Ontario, Canada. 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 toward a decarbonized global economy.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
https://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, 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 sedarplus.ca and at otcmarkets.com.
SOURCE: Electric Royalties Ltd.