Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF). said it has closed two previously announced royalty purchase and sale agreements to acquire a 1% Net Smelter Royalty (NSR) on licenses comprising a “core strategic tenure” at the Cancet Lithium project in Quebec, Canada.
In a statement, Electric Royalties CEO Brendan Yurik said: “We are very excited to close on this transaction and gain exposure to another highly prospective lithium asset in Quebec. An information circular has recently been filed for the spin-out of Cancet into Winsome Resources and we are looking forward to the successful closing of their IPO and financing.”
“We expect Winsome to quickly advance Cancet and are anticipating a steady flow of good news regarding their exploration and development progress,” he added.
Electric Royalties acquired the 1% NSR on the Cancet Project for a total consideration of 3 million shares. The acquisition consideration 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, 25% for 8 months and the remaining 25% for 12 months, said the company.
The Cancet project is an exploration stage project 100% owned by MetalsTech Limited. It is in northern Quebec approximately 250 kilometers (km) east of James Bay, in the Nord-du-Québec region. In a significant advantage, the broader project covers around 12,746 hectares, located on an all-season highway and in close proximity to low-cost hydroelectric power.
In 2017, a two-phase drill program totaling 5,216 meters (m) in 59 holes was completed on the property. Spodumene-bearing pegmatite was traced continuously along strike for approximately 1.1 km. “The discovery of additional pegmatite outcrop and a spodumene-bearing boulder attests to the on-strike exploration potential at Cancet,” said the company.
Options grant
Separately, the Vancouver, British Columbia-based royalty company announced that it has granted 2.45 million five-year stock options to certain management and insiders of the company. The options have been granted under the terms of the company’s stock option plan at an exercise price of $0.415 per share.
The Canadian royalty company was established so that investors could participate in the demand for lithium, vanadium, manganese, tin, graphite, cobalt, nickel, and copper, which is driven by electrification of consumer products like cars, rechargeable batteries, energy storage, and renewable energy generation. It currently has a portfolio of 12 royalties and plans to focus on acquiring royalties on advanced and operating projects.
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