VANCOUVER, BC, May 18, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) ("Electric Royalties" or the
"Company") is pleased to announce that it has entered into a
non-binding letter of intent with Vox Royalty Corp. (TSXV: VOX)
("Vox") to acquire a portfolio of two graphite royalties from Vox.
The portfolio consists of a 2.5% gross concentrate sales royalty on
graphite production at the Graphmada Graphite Mining Complex
("Graphmada"), located in Madagascar and operated by ASX-listed Bass
Metals Ltd ("Bass Metals"), and a 0.75% Gross Revenue Royalty on
the Yalbra Graphite Project ("Yalbra"), located in Western Australia with an established
high-grade graphite resource. Total consideration for the
acquisition is C$2,850,000 in shares
of Electric Royalties and a C$50,000
cash non-refundable exclusivity payment.
Transaction Highlights
- Exposure to near-term graphite production at Graphmada:
-
- existing process plant capable of producing 6,000 tpa of large
flake graphite concentrate;
- in operation for 20 continuous months producing concentrates
comprised of more than 43% large to jumbo flake graphite but
currently on temporary care and maintenance due to in-country Covid
restrictions; and
- currently the subject of a drilling campaign and mining studies
to increase future mine production through organic growth and plant
upgrades.
- Exposure to a high-grade graphite resource in Western Australia with exploration upside at
Yalbra.
The Graphmada royalty is capped at the earlier of A$5 million royalty revenues and December 31, 2028.
Ongoing partnership with Vox Royalty Corp:
- Vox is a high growth precious metals royalty and streaming
company with a portfolio of 50 royalties and streams spanning nine
jurisdictions; and
- Owns a proprietary database of over 7,000 royalties that has
enabled an industry-leading growth rate through the completion of
over 20 transactions and the acquisition of 45 royalties since
January 2019.
Closing of the acquisition is conditional upon completion of due
diligence and customary conditions including the approval of the
TSX Venture Exchange and the execution of definitive transaction
documentation.
Brendan Yurik, CEO of Electric
Royalties, commented: "We are excited to partner with Vox
Royalty Corp. through this initial transaction which provides
Electric Royalties with another near-term cash flowing royalty
opportunity at Graphmada and we look forward to working with the
Vox team to acquire additional battery metal royalties moving
forward."
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 4
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.
About Vox Royalty Corp.
Vox is a growth precious metals royalty and streaming company
with a portfolio of 50 royalties and streams spanning nine
jurisdictions. The Company was established in 2014 and has since
built unique intellectual property, a technically focused
transactional team and a global sourcing network which has allowed
Vox to become the fastest growing company in the royalty sector.
Since the beginning of 2019, Vox has announced over 20 separate
transactions to acquire over 45 royalties.
Further information on Vox can be found at
www.voxroyalty.com.
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.