Electric Royalties to Acquire Further Royalty Interest ON Producing Penouta TIN-Tantalum MINE IN Spain
1
ELECTRIC ROYALTIES TO ACQUIRE FURTHER ROYALTY INTEREST
ON PRODUCING PENOUTA TIN-TANTALUM MINE IN SPAIN
VANCOUVER, BRITISH COLUMBIA – July 27, 2023 – Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF)
(“Electric Royalties” or the “Company”) announces that it has exercised its option (the “Option”) to
increase its existing 0.75% Gross Revenue Royalty (“GRR”) on the producing Penouta tin -tantalum mine
in Spain (the “Project” or “Penouta”), operated by Strategic Minerals Europe Corp. (NEO: SNTA) (OTCQB:
SNTAF) (“Strategic Minerals”), by a further 0.75% in exchange for a cash payment of C$1,250,000. Electric
Royalties now holds an aggregated 1.5% GRR on Penouta.
Upon receipt by the Company of C$1,666,667 in aggregate royalty revenues from the GRR, the royalty
rate will be reduced to 1.25%. Upon receipt by the Company of C$3,333,334 in aggregate royalty revenues
from the GRR, the royalty rate will be reduced to 1.0%. The Company acquired the Option as part of its
acquisition of the original 0.75% GRR on Penouta in January 2023.
Brendan Yurik, CEO of Electric Royalties , commented: “We are pleased to increase our gross revenue
royalty on the Penouta mine, the only currently -operating, primary source of tin in Europ e. We are
encouraged by the progress that Strategic Minerals has made improving operations at Penouta, steadily
increasing primary concentrate production and sales . Gaining additional royalty exposure to a long -
lived asset such as Penouta further strengthens the cash-generating portion of our royalty portfolio of
clean energy metals."
Penouta Tin-Tantalum Royalty Highlights
• The largest producer of tin and tantalum in the European Union1.
• Proven operations team with a track record of successfully building and operating mines.
• Penouta has been steadily increasing primary concentrate production since the start of 2022.
In Q1 2023, Penouta produced 121 tonnes, or a 157% increase vs Q1 20222.
• Additional potential opportunit y to add new revenue stream from high -grade feldspar fr om
historical tailings.
• Long potential mine life based on total measured and indicated resources of 76.3 million tonnes3.
For more information about the Penouta tin -tantalum mine and royalty acquisition terms, please see
Electric Royalties’ news release dated November 16, 2022.
Financing
The Company has drawn down C$ 1,400,000 under the C$5,000,000 convertible credit facility (the
“Drawdown”) with Gleason & Sons LLC (the “Lender”) to fund the cash payment to acquire the additional
0.75% GRR on Penouta pursuant to the Option , and additional transaction costs associated with the
Penouta and Kenbridge royalty acquisitions (see Electric Royalties’ news release dated March 6, 2023 for
further details on Kenbridge). The Loan has a term of 3 years and bears interest (“Interest”) at a floating
2
rate (Secured Overnight Financing Rate (or “SOFR”) + 7%), with a maximum interest rate of 12.5% , with
Interest payments capitalized into the principal amount and due at the end of the Loan term. At the
discretion of the Lender, after six months from the initial drawdown date, the Loan plus accrued Interest
is convertible into common shares of Electric Royalties as follows: (a) for the Loan at the greater of C$0.50;
a 100% premium above the 30-day VWAP C$0.63 of Company’s shares on the TSX Venture Exchange (the
“TSXV”) at the advance; and the minimum price acceptable to the TSXV, per share; and (b) for Interest at
the Market Price (as defined under Exchange policy 1.1) at the time of settlement, s ubject to the Market
Price not being less than the Conversion Price without prior Exchange approval, per share. The Lender will
not be able to hold more than 19.99% of the issued and outstanding shares of the Company unless
disinterested shareholder approval has been obtained.
On closing of the acquisition of the Option GRR, the Company receive d a C$25,000 transaction fee from
Strategic Minerals.
Conversion of the Loan amount advanced pursuant to the Drawdown is subject to the approval of the TSX
Venture Exchange and other customary conditions.
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 Strategic Minerals Europe Corp. website https://www.strategicminerals.com/what-we-do/#penouta-
mine
2 Strategic Minerals Europe Corp.’s financi al statements and MD&A for the three months ended March
31, 2023
3 Further information is available in a NI 43-101 technical report by SRK with effective date March 5, 2021
on the Strategic Minerals Europe Corp. profile at www.sedar.com. M+I Resources are reported at grades
of 443 ppm Tin (Sn), 73 ppm tantalum (Ta) and 89 ppm Ta2O5. Resources at an open pit cut -off grade of
60 ppm Ta2O5 Equivalent, based on prices and recoveries of US$178/kg and 75% for Ta2O5, and US$24/kg
and 75% for Sn.
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 towa rd 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 2 2 royalties, including two royalties that currently generate
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.
3
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
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 inc ludes 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 responsib le for the accuracy of that information,
and that all infor mation 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, postula te 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 involv e 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, recen t 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.