Electric Royalties records first royalty cash flow
Receive instant alerts for news on your actions. Claim your 1-week free trial for StreetInsider Premium here.
VANCOUVER, BC / ACCESSWIRE / October 28, 2021 / Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) (“Electricity charges” or the “Company”) is pleased to announce following the recently completed acquisition of the Middle Tennessee Mine (“MTM”) royalty acquired through a Special Purpose Vehicle (“SPV”) Sprott Resource Streaming and Royalty Corp, or “Sprott Streaming”, 75% and Electric Royalties 25%, that the SPV received its first royalty payment. The SPV will make distributions to both Sprott Streaming and Electric Royalties at least quarterly. Funds controlled by Sprott Streaming co-invested and acquired 75% of the MTM royalty for C $ 13.5 million, with Electric Royalties retaining an option to acquire an additional 25% royalty interest from Sprott Streaming (see press release). company press dated August 11, 2021).
MTM Zinc Royalty Cash Flow Highlights
- Zinc price 1 have increased by more than 25% since the announcement of the initial letter of intent and are up by more than 14% since the acquisition closed on August 11, 2021
- SPV will collect royalties from a sliding scale gross revenue royalty on all zinc production
- First class operator (Nyrstar) with proven experience in the operation and expansion of large mines, part of the Trafigura group.
Electric Royalties CEO Brendan Yurik commented, “Electric Royalties received its first royalty income within 18 months of its IPO. This compares very favorably to the current situation for mine developers, where it takes, on average, more than 15 years to move an asset from exploration to production and where the vast majority of projects never become a mine. We also note the 14% increase in zinc prices since the closing of the MTM acquisition. very strong metals pricing environment and see a decades-long opportunity in clean energy metals that will be needed for the global transition to rebuild global infrastructure and support a carbon-free global economy. ”
About Electric Royalties Ltd.
Electric Royalties is a royalty company formed to capitalize on demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the trend towards electrification of a variety of consumer products: cars, rechargeable batteries, large-scale energy storage, renewable energy production and other applications.
Electric vehicle sales, battery production capacity and renewable energy production are expected to increase significantly over the next few years and, with it, demand for these targeted products. This creates a unique opportunity to invest and acquire royalties on mines and projects that will provide the materials needed to power the electric revolution.
Electric Royalties has a growing portfolio of 17 royalties, including one which is currently generating revenue. The Company mainly focuses on the acquisition of royalties on exploitation projects and at an advanced stage in order to build a diversified portfolio located in jurisdictions with low geopolitical risk, which provides investors with exposure to the clean energy transition through underlying raw materials needed to rebuild the world’s infrastructure over the next few years. decades towards a carbon-free global economy.
For more information, please contact:
Brendan Yurik Tel. : (604) 364‐3540
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 regulator or trading platform, accepts responsibility for the suitability or the accuracy of this press release.
Cautions Regarding Forward-Looking Information and Other Company Information
This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking information”) about the Company within the meaning of Canadian securities laws. Forward-looking information is generally identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those which, by their nature, refer to future events. This information represents forecasts and actual events or results may differ materially. Forward-looking information may relate to the Company’s future prospects and anticipated events and may include statements regarding financial results, future financial condition, expected growth in cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, goals, industry trends and growth opportunities of the Company and projects in which it holds royalty rights.
Although management considers these assumptions to be reasonable, based on the information available, they may prove to be inaccurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or of these projects to be materially different from future results, performance or achievements expressed or under – understood by forward-looking statements. statements. These risks, uncertainties and other factors include, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments concerning the renewable energy industry; the inability to access sufficient capital from internal and external sources, and / or the inability to access sufficient capital on favorable terms; the mining industry in general, the Covid-19 pandemic, recent market volatility, income tax and regulatory issues; the ability of the Company or the owners of these projects to implement their business strategies, including expansion plans; competetion; currency and interest rate fluctuations; and other risks.
The reader is invited to consult the most recent Company documents 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, including copies can be viewed through the company profile page at www.sedar.com and at otcmarkets.com.
THE SOURCE: Electric Royalties Ltd.
See the source version on accesswire.com: