Electric Royalties to Acquire 1% NSR on Rana Nickel Project
Electric Royalties to Acquire 1% NSR on Rana
Nickel Project
VANCOUVER
,
Oct. 19, 2021
/CNW/ - Electric Royalties Ltd.
(TSXV: ELEC) (OTCQB:
ELECF)
("Electric Royalties" or the "Company")
is pleased to announce the signing of a letter of
intent with Scandinavian Resource Holdings ("SRH") and Global Energy Metals Corp. (TSX-V:
GEMC) to acquire a 1% net smelter revenue royalty (the "1% NSR") on four exploration licenses
totaling 25 square kilometers in the Råna mafic-ultramafic intrusion in
Northern Norway
, including the
past producing Bruvann Nickel mine (the "Rana Nickel Project" or "Rana").
Rana Nickel Royalty Acquisition Highlights
Includes the past producing Bruvann Ni-Cu-Co mine that shut down in 2002 due to low nickel
prices, which has significant remaining historical resources.
Located adjacent to main north-south highway and in an area with a long history of mining and
skilled manpower.
Available mine infrastructure includes power, roads, and conveyor from mine site to existing port
facilities.
Large historical drill database of 3,845 holes which demonstrates compelling near mine
exploration potential.
Underexplored property with demonstrated exploration potential.
Rana Nickel Project Overview
The Rana Nickel Project is located on the Ofoten Fjord in
Northern Norway
and is ice-free year-
round. The project includes the past producing Bruvann Ni-Cu-Co mine which was in production from
1989 until 2002 and processed 8.2 million tonnes of ore at an average grade of 0.52% Ni, 0.1% Cu
and 0.02% Co
1
.
A historical estimate of the remaining resource is 9.15 million tonnes at grades of 0.36% Ni, 0.09%
Cu and 0.01% Co above a cut-off of 0.3% Ni
1
. The mineralization is reported to be open in several
directions.
The estimate was obtained from a report prepared by the Norwegian Geological Survey ("NGU").
No classification of the estimate was reported. The estimate is historical in nature and does not
qualify as mineral resources under CIM Definition standards and NI 43-101. A qualified person
under has not done sufficient work to classify the estimates as current mineral resources and the
Company is not treating them as current.
Bruvann is located 2 km away from a shipping dock with an existing conveyor connecting the mine
site with dock facilities. Mine roads and power facilities as well as some of the mine buildings have
been maintained and the main north-south highway in the region crosses the property.
_______________________
1
The past production and historical estimate for the Rana Project is reported in Carl Olaf Mathiesen and Rognvald Boyd, 2017: History of exploration of the nickel resources of the
Råna Intrusion, Nordland, Norway, NGU Report 2017.31, available at
https://www.ngu.no/upload/Publikasjoner/Rapporter/2017/2017_031.pdf
.
Terms
Electric Royalties is acquiring the 1% NSR on the Rana Nickel Project for a total consideration of
2,000,000 common shares of the Company ("Consideration Shares") and
$100,000
cash. The
Consideration Shares will be subject to a voluntary escrow lock-up agreement which provides that
50% of the common shares will be subject to a hold period of 4 months and one day, 25% for 8
months and the remaining 25% for 12 months. The transaction noted herein is subject to completion
of due diligence, approval of the TSX Venture Exchange and other customary conditions.
Brendan Yurik
, CEO of Electric Royalties commented
, "We are very pleased to add the Rana
1% NSR to our royalty portfolio as it represents our first exposure to nickel. Furthermore, we are
excited about the potential of the mine's restart as well as the prospectivity of the surrounding land
package. The mine was shut down in 2002 due to low nickel prices which averaged less than
$4
/lb
during its operation. Nickel prices are more than double what they were when the mine shut down.
Given the projects excellent jurisdiction, good infrastructure and available skilled workforce we
believe that Rana has excellent potential to help supply the nickel required to transition the world
away from fossil fuels and toward a decarbonized global economy."
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. 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.
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.
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],
ww.electricroyalties.com
CO: Electric Royalties Ltd.
CNW 07:45e 19-OCT-21