Electric Royalties Provides Update on 6 Core Assets within Royalty Portfolio
Electric Royalties Provides Update on 6 Core
Assets within Royalty Portfolio
VANCOUVER, BC
,
Dec. 8, 2021
/CNW/ - Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF)
("Electric Royalties" or the "Company") is pleased to provide the following asset update on its rapidly
developing royalty portfolio.
Brendan Yurik
, CEO of Electric Royalties, states, "It's been an incredible period of growth since our
last asset update in September and we've had several more developments across the assets
comprising our battery metal royalty portfolio." Highlights include:
Authier Lithium Royalty
- Sayona Mining (ASX: SYA) is working on a scoping study to
produce spodumene concentrate, stating that they are targeting a start in 2023 by refurbishing
the North American Lithium ("NAL") mine and integrating it with the
Authier
project. Sayona
recently completed a 25 hole, 3,908 meter drill program to expand resources at
Authier
.
Promising results from this program include drill hole AL–21–14, located some 250 meters
west of the
Authier
deposit and potential open pit, returned a spodumene intersection assaying
9 meters @ 1.46% Li
2
O.
Graphmada Graphite Royalty
– Greenwing Resources (ASX: GW1) is currently undertaking a
3,000 meter drill program to further increase the size of the Graphmada deposit and to
progress studies aimed at restarting large scale mining and processing operations.
Cancet Lithium Royalty –
Winsome Resources (ASX: WR1) completed an IPO in November
and completed an
A$18 million
financing to advance the Cancet lithium project in 2022.
Seymour Lake Lithium Royalty –
Green Technology Metals (ASX: GT1) which signed a joint
venture agreement to advance the Seymour Lake project earlier this year, completed an
A$24
million
capital raise and IPO in November and are well funded to advance the asset. Green
Technology Metals is currently undertaking a step-out 11 hole, 3,500 meter diamond drilling
program at Seymour Lake.
Bissett Creek Graphite Royalty
– Northern Graphite Corporation (TSXV: NGC) (OTCQB:
NGPHF) announced the acquisition of two producing graphite mines which will help support
offtake and funding negotiations at Bissett Creek in 2022. Northern Graphite also continued to
demonstrate excellent performance of its Bissett Creek concentrate in battery testing in
November.
Battery Hill Manganese Royalty
– Manganese X Energy (TSXV: MN) continues to improve
processing of high grade battery manganese critical for EV / stored energy markets in support
of a preliminary economic assessment ("PEA") which is currently underway.
"It's been a tremendous year overall with a heavy weighting towards lithium within our current
portfolio and lithium prices up substantially this year. We anticipate major catalysts across most of
our portfolio in 2022 so despite the robust asset advancement we've seen in 2021, we're expecting
2022 to be even more exciting. Since September, operators of the projects on which we hold
royalties have raised over
$40 million
for the advancement of those assets, all occurring at no cost
or dilution to Electric Royalties. From well-funded development plans for the Cancet and Seymour
Lake projects, to upcoming economic studies at Battery Hill, to the progress on moving
Authier
and
Graphmada toward production, 2022 is shaping up to be a transformational year."
Authier Lithium Royalty – 0.5% of Gross Revenue
Sayona Mining Limited ("Sayona") (ASX: SAY) announced as part of its quarterly update that the
integration of NAL with
Authier
will transform both operations and create a world–scale
Quebec
based lithium hub. Sayona stated that they are targeting production of concentrate from 2023 (see
Sayona news release dated
August 30
, 2021). Sayona will also advance plans for downstream
processing in
Quebec
by taking advantage of the province's environmental and economic benefits
which include low cost, renewable hydropower, an established mining services industry and proximity
to the North American battery market (see Sayona news release dated
October 29, 2021
).
In addition, Sayona released drilling results at the
Authier
project as part of a program to increase
the confidence and quality of the lithium mineralisation at the project (see Sayona news release
dated
December 1, 2021
).
A 25–hole, 3,908 meter diamond drill program was undertaken with the results of the first 22
holes received. Drilling was conducted by Les Forages Pikogan, a company owned by the local
First Nations community, demonstrating Sayona's commitment to the First Nations community.
Drill hole AL–21–14, located 250 meters west of the
Authier
deposit and potential open pit,
returned spodumene pegmatites assaying 9 meters @ 1.46% Li
2
O from 144.9 meters depth.
Three additional holes have been completed to infill this new area of mineralisation, with assay
results pending.
Follow up drilling at
Authier
will be planned after the receipt of assay results, with priority work
including updated resource estimates, updated definitive feasibility study and integration of the
new data with Sayona's Abitibi lithium hub.
Graphmada Graphite Royalty – 2.5% of Gross Concentrate Revenue
Greenwing Resources ("Greenwing") (ASX: WR1) announced an increase in the deposit size at its
wholly owned Graphmada Mining Complex in
Madagascar
(see Greenwing news release dated
November 19, 2021
).
An augur program of 180 holes (2,042 meters) at the Ambatofafana Zone has extended the
strike of the Graphmada deposit to the southern end of the mining leases.
A 3,000 meter diamond drilling program will commence this month with the aim to further
increase the extent of the known mineralisation at the project.
The ongoing expansion at Graphmada together with the history of production of high quality
graphite concentrates positions Greenwing to rapidly progress the planning and development of
the project. The company states that given the history of production at Graphmada, coupled
with recent deposit expansion, they are positioned to rapidly progress studies contemplating a
future throughput of up to 40,000 tonnes per annum production of large flake, clean concentrate
suitable for sale to the growing green energy and advanced materials markets.
Cancet Lithium Royalty – 1% of Net Smelter Revenue
Winsome Resources ("Winsome") (ASX: WR1) commenced trading on the Australian Securities
Exchange, following an Initial Public Offering (IPO) which raised
$18 million
(see Winsome news
release dated
November 30, 2021
). Winsome will utilise the funds for an intensive exploration and
drilling campaign at its projects in the
James Bay
region of
Quebec, Canada
, concentrating its
efforts on establishing a maiden resource of high quality spodumene concentrate that is suitable for
conversion across multiple battery applications. Winsome currently has three wholly owned projects
- Cancet, Adina and Sirmac-Clapier. Drilling at the most advanced project, Cancet, indicates a
potentially shallow, open pitable lithium deposit that would be located close to established road and
power infrastructure.
Seymour Lake Lithium Royalty – 1.5% of Net Smelter Revenue
Green Technology Metals ("Green Technology") (ASX: GT1) raised gross proceeds of
A$24 million
to advance the Seymour Lake project. Green Technology is now successfully trading on the
Australian Stock Exchange (see Green Technology news release dated
November 8, 2021
).
In addition, Green Technology has announced that a step-out, 11-hole, 3,500 meter diamond drilling
program at Seymour is to commence in the coming weeks and the program is targeting a substantial
increase in the extent of the existing deposit (see Green Technology news release dated
November
18, 2021
).
Bissett Creek Graphite Royalty – 1% of Gross Revenue and an option to increase the royalty
by 0.5%
Northern Graphite Corporation ("Northern Graphite") (TSXV: NGC) announced the signing of binding
purchase and sale agreements to acquire 100% ownership of the producing Lac des Iles graphite
mine in
Quebec
from the Imerys Group and the Okanjande graphite deposit/Okorusu processing
plant in
Namibia
from the Imerys Group and its joint venture partner for approximately
US$40 million
(see Northern Graphite news release dated
December 2, 2021
). Northern Graphite will become the
only significant North American graphite producer and will acquire an existing customer base and
market share. The acquisitions provide a platform from which to finance and develop Northern
Graphite's Bissett Creek deposit.
Northern Graphite also announced that battery anode material ("BAM") manufactured from its
Bissett Creek concentrates demonstrated excellent electrochemical performance during recent
battery testing by ProGraphite in
Germany
. ProGraphite concluded that Northern Graphite's high
purity anode material is very well suited for the manufacture of high capacity, durable, long-life
lithium-ion batteries (see Northern Graphite news release dated
November 11, 2021
).
Battery Hill Manganese Royalty – 2% of Gross Revenue
Manganese X Energy Corp.
("Manganese X Energy") (TSXV: MN) announced that recent processing and metallurgical work has
resulted in significant cost reductions in the production of high-grade battery material (see
Manganese X Energy news release dated
October 12
, 2021). This work is an integral part of the
upcoming PEA, as the metallurgical processing is a key economic component of the project. The
PEA will characterize and assess the economic and commercial viability of producing high-purity,
battery-grade manganese products from the Battery Hill project located near
Woodstock, New
Brunswick
.
Kemetco Research has completed a major milestone for Battery Hill with the delivery of a
complete process flowsheet. Locked-cycle testing has been initiated to confirm the high
projected recovery rate of leached manganese into a high purity manganese sulphate
monohydrate (HPMSM) product.
Subsequent testing has focused on an innovative purification process to maximize recovery of
the extracted manganese and to reduce costs and improve the environmental footprint.
David Gaunt
, P.Geo., a qualified person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
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 17 royalties, including one royalty that currently
generates revenue, with an additional royalty acquisition in progress. 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.
On Behalf of the Board of Directors,
Brendan Yurik
CEO
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 and the companies
that own or operate said projects.
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 08-DEC-21