Electric Royalties Provides Update on Previously Announced Partial Disposal of Seymour Lake Royalty
VANCOUVER, BC / ACCESSWIRE / August 26, 2022 / Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) (“Electric Royalties” or the “Company”) would like to inform the market of the termination of the previously announced agreement signed on June 27, 2022 to sell 1% of its existing 1.5% Net Smelter Royalty (“NSR”) on the Seymour Lake Lithium Deposit in Ontario, Canada, to Lithium Royalty Corp. (“LRC”). LRC has informed the Company that it is unwilling to waive certain conditions to closing set out in the agreement and the Company accepts LRC’s position that the agreement has terminated. Accordingly, Electric Royalties will retain it’s 1.5% NSR on the Seymour Lake lithium deposit.
Brendan Yurik, CEO of Electric Royalties, commented: “Since signing of the initial LOI an estimate that doubles the mineral resource1 at Seymour Lake has been announced. Further, the price of lithium carbonate has neared all time highs in China of more than $70,000 a tonne2. These factors, coupled with the property owner having just raised A$55M3 to further development at Seymour Lake mean that we are delighted to retain our full 1.5% NSR.”
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 and 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 fuel the electric revolution.
Electric Royalties has a growing portfolio of 19 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.
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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.
- Indicated Mineral Resources estimate is 5.2 million tonnes at 1.29% lithium oxide and 161 ppm tantalum pentoxide using a 0.2% lithium oxide cut-off. See Green Technology Metals Limited news release dated June 23, 2022, Appendix B: JORC Code 2012, Table 1. Both JORC and CIM are CRIRSCO members hence adhere to international resource reporting standards and adopt a similar approach to resource definition and classification. Differences between the two codes do exist in the requirements for QP site visits, technical reports and use of resource categories.
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. This news release includes information regarding other companies and projects owned by such other companies in which the Company holds a royalty interest, based on previously disclosed public information disclosed by those companies and the Company is not responsible for the accuracy of that information, and that all information provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information and Other Company Information. 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.
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Published Fri, 26 Aug 2022 23:06:02 -0500