Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) said it has received its first royalty payment from the Middle Tennessee Mine (MTM) zinc royalty, which is owned by the Sprott Resource Streaming and Royalty Corp special purpose vehicle (SPV).
Electric Royalties, which owns 25% of the SPV, noted that it will receive distributions from the MTM royalty on a quarterly basis, at minimum.
“Electric Royalties has received its first royalty revenue within 18 months of going public,” Electric Royalties CEO Brendan Yurik said in a statement.
“We are in a very strong metal price environment and see a multi-decade opportunity in clean energy metals that will be required for the global transition to rebuild the world’s infrastructure and support a decarbonized global economy,” Yurik added.
The company noted the zinc price is up more than 14% since the MTM royalty acquisition closed on August 11, 2021.
Electric Royalties added it has retained an option to acquire a further 25% royalty interest in the MTM royalty from Sprott Streaming.
SPV is expected to receive royalty income from a sliding scale gross revenue royalty on all zinc production at the Middle Tennessee Mine.
Electric Royalties 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. The company currently has a portfolio of 12 royalties and plans to focus on acquiring royalties on advanced and operating projects.
www.ferroalloynet.com
