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.

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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% GMRSayona Quebec Inc.Quebec,
Canada
Lithium
Authier Lithium
Project
0.5% GMR9087-1400 Quebec
Inc.
Quebec,
Canada
Lithium
Mont Sorcier Project1% GMRVanadium One Iron
Corp.
Quebec,
Canada
Vanadium
Battery Hill Project2% GMRSunset Cove MiningNew
Brunswick,
Canada
Manganese
Authier Lithium
Exploration Project
2% GMRGlen Eagle Resources
Inc.
Quebec,
Canada
Lithium
Chubb Lithium Project2% GMRGreat Thunder Gold
Corp.
Quebec,
Canada
Lithium
Bouvier Lithium
Project
2% GMRGreat 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.

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.