Electric Royalties closes acquisition of portfolio of 7 royalties

VANCOUVER, BC, July 13, 2020 /CNW/ - Electric Royalties Ltd. (TSXV: ELEC) ("Electric Royalties" or the "Company") is pleased to announce the closing of the acquisition of a portfolio of seven royalties from Globex Mining Enterprises Inc. ("Globex Portfolio"). 

The Globex Portfolio consists of the following Royalties:

Authier Lithium Royalty (the "Authier Royalty")
The Authier Royalty is a 0.5% Gross Metal Royalty ("GMR") on part of the Authier lithium project (the "Authier Lithium Project"). The Authier Lithium Project is located in the municipality of Preissac in the Province of Quebec and comprises 19 mineral claims.

Sayona Mining Limited completed a revised definitive feasibility study on the Authier Lithium Project in November 2019 under JORC. The Authier Lithium Project is located in close proximity to established infrastructure, including rail and road, and has access to a skilled local workforce and as a result, there is no requirement for on–site infrastructure such as accommodation camps and power plants. The Project also benefits from access to cheap, environmentally friendly hydroelectric power, simple deposit geology as well as well understood mining and production processes.

LaMotte Authier Lithium Royalty (the "LaMotte Royalty")
The LaMotte Royalty is a 0.5% GMR on the Authier Lithium Project. The LaMotte Royalty relates to mining claim number CDC 2194819 (the "LaMotte Claim") located in LaMotte Township, Range 6, Lot 7, in the Province of Quebec. The LaMotte Royalty covers one claim that forms part of the Authier Lithium Project.

Mont Sorcier Vanadium Royalty (the "Mont Sorcier Royalty")
The Mont Sorcier Royalty is a 1% GMR on the Vanadium production only on the Mont Sorcier project (the "Mont Sorcier Project"). The Mont Sorcier Project is located in Roy Township, Province of Quebec and comprises 37 mining claims.

TSXV-listed Vanadium One Iron Corp. completed a Preliminary Economic Assessment ("PEA") for an open pit mine at the Mont Sorcier Project (see Vanadium One news release dated February 27, 2020), estimating annual production of approximately 5.0 million tonnes of high grade, low impurity, iron concentrate grading ~65% iron with 0.6% V2O5 per tonne of concentrate and a potential mine life of 37 years¹.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized.

The Mont Sorcier Project is located in a region with a long history of mining and robust infrastructure in place to support future development:  there is access to all season roads, low cost hydro power from the provincial grid and the project is located within 20 km of the rail head connected to two all season, ocean going ports.

____________________

¹ Based on analysts concensus 65% Fe benchmark price US$92/dmu with US$15/dmu titanium credit, establishing a selling price of US$107/dmu cost and freight to port in China. Exchange rate is US$:C$ 1:1.32.  Further information can be found in the PEA technical report, effective date 2020 filed on the Vanadium One profile at www.sedar.com.

Battery Hill Manganese Royalty (the "Battery Hill Royalty")
The Battery Hill Royalty is a 2% GMR on the Battery Hill project (the "Battery Hill Project").  The Battery Hill Project is located in Carleton County, Province of New Brunswick and comprises 32 mining claims.  The Battery Hill Project is an advanced stage exploration project.

Authier Lithium Exploration Royalty ("Authier Lithium Exploration Royalty")
The Authier Lithium Exploration Royalty is a 2% GMR on claims adjacent to the Authier Lithium Project (the "Authier Lithium Exploration Project"). The Authier Lithium Exploration Project is a greenfield exploration project.

Chubb Lithium Royalty (the "Chubb Royalty") and Bouvier Lithium Royalty (the "Bouvier Royalty")
The Chubb Royalty is a 2% GMR on the Chubb lithium project (the "Chubb Lithium Project") and the Bouvier Royalty is a 2% GMR on the Bouvier lithium project (the "Bouvier Lithium Project. The Chubb Lithium Project and Bouvier Lithium Project are located in Lacorne and Figuery Townships of Quebec, respectively, and collectively comprise 22 mineral claims.  The Chubb Lithium Project and the Bouvier Lithium Project are greenfield exploration projects.

Project	Type and Amount of Royalty	Property Owner	Location	Commodity
Authier Lithium Project	0.5% GMR	Sayona Quebec Inc.	Quebec, Canada	Lithium
Authier Lithium Project	0.5% GMR	9087-1400 Quebec Inc.	Quebec, Canada	Lithium
Mont Sorcier Project	1% GMR	Vanadium One Iron Corp.	Quebec, Canada	Vanadium
Battery Hill Project	2% GMR	Sunset Cove Mining	New Brunswick, Canada	Manganese
Authier Lithium Exploration Project	2% GMR	Glen Eagle Resources Inc.	Quebec, Canada	Lithium
Chubb Lithium Project	2% GMR	Great Thunder Gold Corp.	Quebec, Canada	Lithium
Bouvier Lithium Project	2% GMR	Great Thunder Gold Corp.	Quebec, Canada	Lithium

Electric Royalties acquired the Globex Portfolio in exchange for 3,000,000 shares and C$500,000 cash. In the event the Authier Lithium Project (as defined below) enters commercial production within six years, the Company shall make a bonus payment of C$250,000 in cash to Globex, such payment to be due and payable on the date that the Authier Lithium Project achieves 12 months of continuous commercial production, as defined in the definitive feasibility study for the Authier Lithium Project. The contingent bonus will escalate annually with the Consumer Price Index ("CPI").

David Gaunt, PGeo., a qualified person who is not independent of Electric Royalties has reviewed and approved the technical information in this release.

For further details on Electric Royalties, please visit www.electricroyalties.com or contact us at [phone] or send us an email at [email protected].

On Behalf of the Board of Directors

Brendan Yurik
Chief Executive Officer

About Electric Royalties Ltd

Electric Royalties is a royalty company set 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 to electrification (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.

In addition to the Globex portfolio, Electric Royalties has a portfolio of 6 royalties under binding letters of intent, closing subject to fulfillment of conditions including regulatory approvals. 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.

Cautionary Statements Regarding Forward-Looking Information 

This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company 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 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.

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 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 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 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.

Investor Contact: Mars Advisors, www.marsinvestorrelations.com; Media Contact: Electric Royalties Ltd., Talia Beckett, Tel: [phone], [email protected], www.electricroyalties.com

Related Links

https://www.electricroyalties.com/