VANCOUVER, BC, Oct. 15, 2021 /CNW/ - Electric Royalties
Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties" or
the "Company") is pleased to announce the closing of two
previously announced (see Electric Royalties September 8, 2021 release) 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").
Brendan Yurik, CEO of Electric
Royalties, commented, "We are very excited to close on this
transaction and gain exposure to another highly prospective lithium
asset in Quebec. An information
circular has recently been filed for the spin-out of Cancet into
Winsome Resources and we are looking forward to the successful
closing of their IPO and financing. We expect Winsome to
quickly advance Cancet and are anticipating a steady flow of good
news regarding their exploration and development progress."
Terms
Electric Royalties acquired 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.
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 m 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.
Options Grant
The Company also announces that it has
granted 2,450,000 five-year stock options to certain management and
insiders of the Company. The options have been granted under the
terms of the Company's stock option plan at an exercise price of
$0.415 per share.
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 (lithium,
vanadium, manganese, tin, graphite, cobalt, nickel, zinc &
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 growing portfolio of 17 royalties,
including one royalty that currently generates revenue. The
Company is focused predominantly on acquiring royalties on advanced
stage and operating projects to build a diversified portfolio
located in jurisdictions with low geopolitical risk, which offers
investors exposure to the clean energy transition via the
underlying commodities required to rebuild the global
infrastructure over the next several decades towards a decarbonized
global economy.
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 regulatory body or securities
exchange platform, 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 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 and may include statements
regarding the 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 of the Company
and the projects in which it holds royalty interests.
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
projects 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 the owners of these projects to implement their 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 as well as other information filed with the OTC Markets
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 and at
otcmarkets.com.
SOURCE Electric Royalties Ltd.
