09:46:04 EDT Tue 09 Aug 2022
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or Name

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Electric Royalties Ltd
Symbol ELEC
Shares Issued 91,601,509
Close 2022-06-28 C$ 0.16
Recent Sedar Documents

Electric to sell two-thirds of Seymour Lake NSR for $4M

2022-06-28 10:15 ET - News Release

Mr. Brendan Yurik reports


Electric Royalties Ltd. signed an agreement on June 27, 2022, to sell 1 per cent of its existing 1.5-per-cent net smelter royalty (NSR) on the Seymour Lake lithium deposit in Ontario, Canada, to Lithium Royalty Corp. For more information on the Seymour Lake lithium deposit, see Electric Royalties' news release on Feb. 17, 2021.

Brendan Yurik, chief executive officer of Electric Royalties, commented: "The sale of part of our Seymour Lake royalty will unlock some of the value in our portfolio. The company acquired the 1.5-per-cent NSR in 2021 for three million shares, prior to the substantial increase of the lithium price this past year. This partial sale, along with the cash from our recent financing, will enable us to deploy capital into additional nearer-term production opportunities with a view to increasing cash flow. We believe our current valuation does not reflect the value of our royalty portfolio of 19 royalties acquired to date, with potential for promising cash flow over the next few years."

Acquisition terms

The company will receive $4-million cash consideration for selling two-thirds of its 1.5-per-cent NSR, being one-half of an aggregate 3-per-cent NSR acquired from an arm's-length holder that originally acquired the NSR interest, with the balance of the project NSR held by Sandstorm Gold Ltd. Upon closing of the transaction, Electric Royalties will retain a 0.5-per-cent NSR on Seymour Lake.

Closing is expected around mid-August, 2022, and is subject to completion of due diligence and certain customary conditions.

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 19 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 through the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.

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