Electric Royalties Reports Positive Developments on Key Copper, Lithium, Graphite, Manganese, and Vanadium Royalties
Electric Royalties Reports Positive Developments
on Key Copper, Lithium, Graphite, Manganese, and
Vanadium Royalties
VANCOUVER, BC / ACCESS Newswire / April 16, 2025 / Electric Royalties Ltd.
(TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to provide
commentary from its CEO about the inherent advantages of investing in a royalty company,
and an update on its royalty portfolio.
Electric Royalties CEO Brendan Yurik commented: "The development arc that we have
seen at our Seymour Lake lithium royalty is an excellent example of the core value
proposition of investing in a royalty company. Seymour Lake is a 1.5% Net Smelter Royalty
we acquired approximately three years ago in an all-share transaction valued at roughly $1
million at the time. Since then, project operator Green Technology Metals Limited has
raised over $70 million to fund development activities and recently signed a Letter of Intent
with the Canadian government for a further $100 million in project financing.
"At the time we acquired the Seymour Lake lithium royalty, the project only had a historical
JORC resource and minimal metallurgical studies completed. Since then, Green
Technology Metals has reported a Preliminary Economic Assessment ("PEA") and a
resource upgrade, and now is planning to complete a Feasibility Study ("FS") in 2026 to
support potential production as early as 2027. Further details are available on its website.
Importantly, remember that a royalty's expected annual revenue can be calculated simply
by taking the royalty rate (1.5% in this case) and multiplying it by the planned production
profile by the metal (lithium) price.
"At the time of our Battery Hill royalty acquisition, the underlying project had only a
historical resource estimate. Today, metallurgy has been well advanced, the resource has
been upgraded, and a PEA has been completed. Furthermore, Eric Sprott recently funded
project operator Manganese X Energy Corp. for the completion of a Prefeasibility Study
("PFS"). And today, we are reporting on additional drill results to support the upcoming PFS.
"Electric Royalties likewise acquired the Mont Sorcier vanadium royalty at a time when it
only had a resource estimate in place. Today, operator Cerrado Gold Inc. has successfully
completed further metallurgical testing in partnership with Glencore and reported that it is
presently on track to complete an FS in Q1 2026.
"The Authier lithium royalty is set to be integrated into the already producing North
American Lithium ("NAL") mine operated by Sayona Mining Limited, which will soon
complete its merger with Piedmont Lithium Inc. Upon completion, and as outlined in the
NAL's FS, Authier's integration could add to Electric Royalties' cash flow in the near term.
"The Graphite Bull graphite royalty was a secondary asset when we acquired it in a package
with our Graphmada royalty; however, there has been significant progress at this project
over the last 18 months and today we are reporting that operator Buxton Resources has
completed an updated resource estimate and is expecting results soon from metallurgical
testwork to help inform its planned PFS.
"Lastly, our Zonia copper royalty, which we believe is one of the top copper oxide projects in
North America, is currently in the process of being acquired by a European group that has
announced plans to aggressively advance it to production. As operator World Copper Ltd.
reported last fall, the resource nearly doubled at Zonia1."
Highlights since the Company's previous update include:
• Seymour Lake Lithium Project (1.5% Net Smelter Royalty) -On February 21, 2025,
Green Technology Metals Limited (ASX:GT1) ("Green Technology Metals")
announced an updated PEA for the Seymour Lake Project in Ontario, Canada2. It
previously published technical studies in December 2023 describing a plan for the
combined development of the Seymour Lake Project and the Root Project (the latter
of which Electric Royalties does not hold a royalty interest). The new 2025 PEA
assesses Seymour Lake on a standalone basis, taking into account updated
optimizations and mine development options, and changed lithium market
conditions.
According to Green Technology Metals, their current goals are to advance the
planned feasibility study in 2026 and commence production in 2027.
On February 12, 2025, Green Technology Metals announced that metallurgical
testwork results from a Dense-Media-Separation-only processing circuit support a
5.5% to 6.0% spodumene concentrate with low impurities, at industry-comparable
recoveries. According to Cameron Henry, Managing Director of Green Technology
Metals, "The spodumene concentrate grade and lithium recovery achieved are
consistent with [our] previous testwork and comparable to some of the world's
leading hard rock spodumene lithium projects. "
On February 5, 2025, Green Technology Metals announced a proposed lithium
hydroxide monohydrate ("LHM") conversion plant in Ontario - in partnership with
battery manufacturer EcoPro Innovation - which will include two 13-ktpa EcoPro-
standard hydrometallurgical trains, utilizing proven LHM module design from
EcoPro's South Korean operations to ensure cost accuracy, design precision, and
reduced commissioning risks. Pilot testwork is underway at EcoPro's South Korean
facility to produce battery-grade lithium hydroxide from Seymour Lake material. A
preferred site for the conversion facility has been identified in Thunder Bay, Ontario,
which is undergoing detailed due diligence.
Green Technology Metals is also advancing discussions with EcoPro regarding
project-level investment, with completion targeted for the first half of 2025. This
potential investment is in addition to the Letter of Interest from Export Development
Canada indicating the potential to provide up to C$100 million in project financing,
announced by Green Technology Metals on December 22, 2024.
Electric Royalties is relying on the information provided by Green Technology Metals
and is unable to verify the PEA and metallurgical results.
• Battery Hill Manganese Project (2.0% Gross Metal Royalty) - On April 8, 2025,
Manganese X Energy Corp. (TSXV:MN) ("Manganese X") announced results of drilling
at the Battery Hill Project in New Brunswick, Canada3. The program focused on infill
and expansion drilling with the goal to upgrade inferred resources to measured and
indicated categories to support the upcoming PFS that is expected to commence in
Q2 2025. A new mineral resource estimate incorporating the drill results is
underway.
On March 12, 2025, Manganese X announced positive results from ABH
Engineering's Phase 1 ore sorting study on sample material extracted from Battery
Hill, conducted in preparation for the PFS. The initial study results demonstrated
over 95% effectiveness in sorting valuable rocks from waste. The test program used
a sample set grading 7.7% manganese. Based on the favourable preliminary results
from Phase 1, a more extensive Phase 2 study is currently underway to assess the
economic potential of the sorting technology being used. According to Manganese
X, the potential benefits include improved project economics, reduced energy and
water consumption, expansion of resource by cut-off grade reduction, a potential
increase in mine life, an increase in total metal production, a reduction in capital
expenditures and, decreased tailings storage and associated risk.
Manganese X announced the closing of its private placement on January 29, 2025,
which raised aggregate gross proceeds of C$2,100,000, of which C$2,000,000 was
invested by leading mining investor Eric Sprott. Manganese X plans to use the
proceeds primarily to advance the development of Battery Hill, including the PFS.
Electric Royalties is relying on the information provided by Manganese X and is
unable to verify the results from drilling and the ore sorting study.
• Mont Sorcier Iron and Vanadium Project (1.0% Gross Metal Vanadium Royalty) -
On March 3, 2025, Cerrado Gold Inc. (TSXV:CERT) ("Cerrado") announced further
positive metallurgical test results supporting the ability to produce high-purity iron
concentrates at the Mont Sorcier Project near Chibougamau, Québec. The
metallurgical results will be used to determine the final flow sheet design for the
feasibility study at Mont Sorcier which, according to Cerrado, is expected to be
completed in Q1 2026.
Electric Royalties is relying on the information provided by Cerrado and in unable to
verify the reported metallurgical results.
• Authier Lithium Project(0.5% Gross Metal Royalty) - Further to Sayona Mining
Limited (ASX:SYA) ("Sayona") and Piedmont Lithium Inc. 's (NASDAQ & ASX: PLL)
("Piedmont") announcement on November 19, 2024 regarding the signing of a
definitive agreement to combine the two companies to create a leading lithium
business, the companies announced on April 10, 2025 that the combined company
will be known as Elevra Lithium and its board will have four nominees from each of
Sayona and Piedmont. The merger is expected to be completed in mid 2025.
Sayona plans to integrate mineralized material from the Authier Lithium Project4, on
part of which Electric Royalties holds a 0.5% gross metal royalty, with its nearby
North American Lithium ("NAL") mine. NAL and Authier are currently part of Sayona
Québec, owned 75% by Sayona and 25% by Piedmont.
Electric Royalties is relying on the information provided by Sayona.
• Graphite Bull Graphite Project (0.75% Gross Revenue Royalty) - On February 17,
2025, Buxton Resources Limited (ASX:BUX) ("Buxton") announced an updated
mineral resource estimate ("MRE") under JORC standards for the Graphite Bull
Project in Western Australia, that increases contained graphite by 345%. The
mineral resource includes 7.61 million tonnes at 11.6% total graphitic carbon
("TGC") in the indicated category and 13.1 million tonnes at 10.4% TGC in the
inferred category, at a 7% TGC cut-off5. Buxton CEO Marty Moloney stated: "This
updated MRE improves the tonnage, thickness, strike extent and geological
confidence of the Graphite Bull Project, with numerous shallow drill targets
remaining as exploration upside. "
As announced by Buxton on April 1, 2025, downstream qualification testwork on
Graphite Bull material is well underway with results expected in July 2025. The
testwork results, along with Buxton's updated MRE, will guide its plans for further
work at Graphite Bull.
Electric Royalties is relying on the information provided by Buxton and is unable to
verify the mineral resource estimate.
• Zonia Copper Oxide Project (0.5% Gross Revenue Royalty) - On February 19,
2025, World Copper Ltd. (TSXV:WCU) ("World Copper") announced it has entered
into a binding letter agreement to sell its interest in the Zonia copper-oxide deposit
in Arizona, USA, to an arm's length third-party (a European metals and mining
investment manager with two decades of leadership in investing in and developing
mining projects worldwide) in consideration for C$26.0 million in cash, payable in
tranches. The letter agreement provides for a 90-day due diligence period.
Electric Royalties is relying on the information provided by World Copper.
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 World Copper Ltd. news release dated September 9, 2024. The NI 43-101 technical report
filed on sedarplus.ca is titled "Resource Estimate for The Zonia Project 2024 Update" with
effective date August 27, 2024, amended November 8, 2024. The updated estimate
includes 112.2 million short tons grading 0.297% total-copper in the Indicated category
(668 million pounds of copper) and 62.9 million short tons grading 0.255% total-copper in
the Inferred category (320 million pounds of copper) at a cut-off grade of 0.18%; recoveries
of 75% in oxides and 70% in the transitional zone.
2 Green Technology Metals Limited news release titled "Optimised Seymour Project PEA
Highlights Robust Economics" dated February 21, 2025.
3 See Manganese X Energy Corp. 's news release dated April 8, 2025 for full results, QA/QC
practices and Qualified Person.
4 Sayona Mining Limited news release dated April 14, 2023, titled "DEFINITIVE FEASIBILITY
STUDY CONFIRMS NAL VALUE WITH A$2.2B NPV" .
5 Buxton Resources Limited news release titled "Graphite Bull Resource Expands 345%"
dated February 17, 2025, JORC Code, 2012 Edition - Table 1. The Graphite Bull Mineral
Resource is reported above the 200 m RL, which is approximately at a depth of 200 m
below topographic surface. This depth is considered to be a reasonable depth to which
conventional open pit mining will reach. The MRE is reported above a cut-off grade of 7%
TGC, which is recommended by Buxton and based upon analyses of commodity prices,
cost estimates for mining and processing, and assumptions regarding a breakeven TGC
grade. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
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 43 royalties in lithium, vanadium, manganese,
tin, graphite, cobalt, nickel, zinc and copper across the world. 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.
Company Contact
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
https://www.electricroyalties.com/
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While management considers these assumptions to be reasonable, based on information
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SOURCE: Electric Royalties Ltd.