Electric Royalties Signs Definitive Acquisition Agreements to Acquire 3 Cobalt Royalties
Electric Royalties Signs Definitive Acquisition
Agreements to Acquire 3 Cobalt Royalties
VANCOUVER, BC
,
July 23, 2020
/CNW/ -
Electric Royalties Ltd.
(TSXV: ELEC)
("Electric
Royalties" or the "Company")
is pleased to announce the execution of the definitive acquisition
agreements to acquire a portfolio of 3 royalties from Global Energy Metals Corp.
(TSXV: GEMC)
("
Global Energy
").
Brendan Yurik
, CEO of Electric Royalties, summarized: "It's been an exciting several weeks for
Electric Royalties with the closing of an oversubscribed financing for
$5.2 million
and the successful
completion of our go-public transaction with Rebel Capital. With the signing of this agreement with
Global Energy Metals, we have now closed on or have signed definitive agreements on 11 royalties
in the past month and we are already working on new royalty acquisitions."
Millennium Cobalt Royalty (the "
Millennium GMR Royalty
")
The Millennium GMR Royalty is a 0.5% Gross Metal Royalty ("
GMR
") on the Millennium cobalt
project (the "
Millennium Cobalt Project
"). The Millennium Cobalt Project is located near Mount Isa,
Queensland, Australia
.
The Millennium Cobalt Project
The Millennium Project is an advanced exploration stage cobalt-copper project located in the Mount
Isa mining district in the northern part of the jurisdictionally safe state of
Queensland
, Australia. The
deposit is well located close to the regional centres of Mount Isa and Cloncurry with their well-
established mining, transport and processing infrastructure and skilled workforce. There is excellent
potential to expand the known resource at the project, and preliminary metallurgical studies have
demonstrated the potential to recover in excess of 91% of the cobalt and copper
[1]
.
Mt. Dorothy Cobalt Royalty ("
Mt.
Dorothy Royalty
")
The Mt.
Dorothy Royalty
is a 0.5% GMR on the Mt. Dorothy cobalt project (the "
Mt. Dorothy
Cobalt Project
"). The Mt. Dorothy Cobalt Project is an early stage exploration located near Mount
Isa,
Queensland, Australia
.
Cobalt
Ridge Royalty
("
Cobalt
Ridge Royalty
")
The Cobalt Ridge Royalty is a 0.5% GMR on the Cobalt Ridge cobalt project (the "
Cobalt Ridge
Cobalt Project
"). The Cobalt Ridge Cobalt Project is an early stage exploration project located near
Mount Isa,
Queensland, Australia
.
Electric Royalties will acquire the royalties in exchange for 1,150,000 shares and
C$150,000
cash.
Closing remains subject to obtaining governmental approvals in
Australia
.
Millennium Call Options
Electric Royalty has a call option (the "
First Global Option
") exercisable at any time in the two
years from the closing date of the acquisition ("
Closing Date
") to acquire a 0.5% Royalty on the net
smelter returns ("
NSR
") from the Millennium Cobalt Project (the "
Millennium NSR Royalty
") for
C$500,000
. Up to 25% of the payment is payable in shares, at Electric Royalties' election. Upon
exercise of the First Global Option, Electric Royalties will have a further call option, exercisable on
the earlier of (i) the third anniversary of the Closing Date and (ii) six months from the date that a
preliminary economic analysis or similar study on the Millennium Cobalt Project is provided by Global
Metals to Electric Royalties, to increase the Millennium NSR Royalty to 1.5% for
C$1,000,000
. Up to
25% of the payment is payable in shares, at Electric Royalties' election.
David Gaunt
, P.Geo., a qualified person who is not independent of Electric Royalties has reviewed
and approved the technical information in this release.
Electric Royalties further announces that it has elected not to close on the
Cleveland
and Oropesa
Tin royalties.
For further details on Electric Royalties, please visit
www.electricroyalties.com
or 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 (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 8 royalties, with a further 3 royalties under definitive agreement,
with closing subject to fulfillment of customary conditions including regulatory approvals. Electric
Royalties 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
This news release includes forward-looking information and forward-looking statements
(collectively, "forward-looking information") with respect to the Company 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 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.
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 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 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 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
.
____________________
1
Further information is available in a technical report on the Global Energy Metals Corp profile at
www.sedar.com
.
SOURCE
Electric Royalties Ltd.
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For further information:
Investor Contact: Mars Advisors, www.marsinvestorrelations.com; Media
Contact: Electric Royalties Ltd., Talia Beckett, Tel: (778) 374-2000,
[email protected], www.electricroyalties.com
CO: Electric Royalties Ltd.
CNW 07:45e 23-JUL-20