VANCOUVER, BC, Sept. 8, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) ("Electric Royalties" or the
"Company") is pleased to announce the signing of two
royalty purchase and sale agreements to acquire, in the aggregate,
a 1% Net Smelter Royalty (the "1% NSR") on licenses comprising core
strategic tenure at the Cancet Lithium Project situated in
Quebec, Canada (the "Cancet
Project" or "Cancet"), such transactions being with arm's-length
parties.
"We are pleased to add the Cancet lithium royalty to our
portfolio of high-impact hardrock lithium royalties on projects
securely located in Eastern
Canada. MetalsTech Limited, the Australian-listed
developer of the Cancet Project, has had significant corporate
success advancing the asset including a recent royalty financing
with the privately-held Lithium Royalty Corp., and a recent
announcement to spin out their portfolio of lithium assets (which
includes the Cancet Project) into a new company, Winsome Resources
Limited. MetalsTech has also appointed Canaccord Genuity
(Australia) as lead manager for up
to an A$18 million financing as
relates to the proposed spin-out transaction of their lithium
assets.
The Cancet Project is favourably located in the heart of Plan
Nord, an area in which the Quebec
government is fostering resource development, including the next
generation of battery metal deposits. Cancet is located
adjacent to the Taiga Highway and would have access to abundant
hydropower which could provide clean power for any eventual mining
operation. Initial work suggests that the mineralization at Cancet
compares very favorably with other deposits in the region. At
Electric Royalties, we expect the project to advance toward a
resource with additional drilling over the next several years.
In addition, the contribution of the Cancet lithium royalty
under an all-share basis to our portfolio reflects the growing
strategic value of our listed-equity and demonstrates our capacity
to build Electric Royalties into North
America's premier battery metals royalty company with
ongoing transactional velocity," noted Brendan Yurik CEO of
Electric Royalties.
Terms
Electric Royalties is acquiring the 1% NSR on the Cancet Project
for a total consideration of 3,000,000 common shares ("Acquisition
Consideration") of the Company. 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.
The transactions noted herein are subject to completion of due
diligence, approval of the TSX Venture Exchange and other customary
conditions.
Cancet Lithium Project Overview
The Cancet Project is an exploration stage project 100% owned by
MetalsTech Limited (ASX: MTC). The project is located in
northern Quebec approximately 250
km east of James Bay, in the
administrative region known as Nord-du-Québec. The broader
project covers approximately 12,746 hectares, is beneficially
located on an all-season highway and is in close proximity to
low-cost hydroelectric power.
In 2017, a two-phase drill program totaling 5,216 metres in 59
holes was completed on the property. Spodumene-bearing
pegmatite was traced continuously along strike for approximately
1.1 km. The mineralization, as well as host pegmatite, is
interpreted to be shallow dipping; however, drill testing of the
down dip continuity is limited. The discovery of additional
pegmatite outcrop and a spodumene-bearing boulder attests to the
on-strike exploration potential at Cancet.
David Gaunt, P.Geo., a Qualified
Person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
About Electric Royalties Ltd.
Electric Royalties is a royalty company established to take
advantage of the demand for a wide range of commodities including
lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc,
copper and iron 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 growing portfolio of 16 royalties and
is focused 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.
Cautionary Statements Regarding Forward-Looking
Information and Other Company Information
This news release includes forward-looking information
and forward-looking statements (collectively, "forward-looking
information") with respect to the Company and these other companies
and within the meaning of Canadian securities laws. Forward looking
information is typically 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 predictions and actual events
or results may differ materially. Forward-looking information may
relate to the Company's future outlook and anticipated events or
results or those of these other companies and may include
statements regarding the Company's financial results, future
financial position, expected growth of cash flows, business
strategy, budgets, projected costs, projected capital expenditures,
taxes, plans, objectives, industry trends and growth opportunities
or those of these other companies.
While management considers these assumptions to be
reasonable, based on information available, they may prove to be
incorrect. 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 these other
companies to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. These risks, uncertainties and other
factors include, but are not limited to risks associated with
general economic conditions; adverse industry events; marketing
costs; loss of markets; future legislative and regulatory
developments involving the renewable energy industry; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the mining industry generally, the Covid-19 pandemic, recent market
volatility, income tax and regulatory matters; the ability of the
Company or any of these other companies to implement its business
strategies including expansion plans; competition; currency and
interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings
on SEDAR and those of these other companies, or equivalent public
filings for a more complete discussion of all applicable risk
factors and their potential effects, copies of which may be
accessed through the Company's profile page at
www.sedar.com.
SOURCE Electric Royalties Ltd.