Electric Royalties Signs LOI With Sprott Resource Streaming And Royalty For C$9.15 Million Co-investment

Electric Royalties Ltd. (TSXV: ELEC) (“Electric Royalties” or the “Company”) is pleased to announce that further to news release of the Company dated March 10, 2021 regarding the acquisition of the Middle Tennessee Mine (“MTM”) royalty, the Company has entered into a letter of intent (“LOI”) with Sprott Resource Streaming and Royalty (“Sprott Streaming”) to help fund the acquisition.
Financing Highlights
Under the proposed terms, Sprott Streaming would pay C$9.15 million in cash in return for 50% of the MTM royalty with Electric Royalties retaining 50% of the MTM royalty
Proposed co-investment represents 70% of the MTM royalty acquisition cash consideration
Establishes a relationship with the Sprott group, a globally recognized financial partner in the resources industry.
The proposed transaction is subject to completion of due diligence and other customary matters.
Brendan Yurik, CEO of Electric Royalties, stated “We are excited to partner with Sprott on our first cash flowing royalty acquisition and look forward to working with them on many more deals in the future. Sprott Royalty and Streaming has an outstanding team and track record.”
Financing Update
As per the agreement with Globex Mining Enterprises Inc. (“Globex”) dated March 10, 2021, Electric Royalties will need to complete a minimum C$10 million financing to close the MTM royalty acquisition. The Company is in discussions with several parties regarding an equity financing, and will disclose additional information in due course.
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 & 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 portfolio of 12 royalties with 2 additional royalties currently under contract, subject to completion. Electric Royalties plans to focus predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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