Electric Royalties Closes $2 Million Private Placement
Electric Royalties Ltd. (TSXV: ELEC) (“Electric Royalties” or the “Company”) is pleased to announce that it has closed a private placement (the “Private Placement”) announced previously on May 5, 2020 and updated on May 26, 2021 consisting of 5,000,000 units of the Company issued for gross proceeds of CAD $2,000,000 .
Each unit is comprised of one common share (a “Share”) of the Company plus one common share purchase warrant (a “Warrant”). Each Warrant can be exercised for a 2 year period from the Closing Date at $0.60 per Warrant for one Share. In connection with the private placement, Electric Royalties paid cash fees of $67,200 . In addition, Electric Royalties issued brokers’ warrants entitling the holders to acquire up to an aggregate of 93,000 Shares of Electric Royalties at a price of $0.60 per Share for a period of 12 months from closing.
The securities issued pursuant the Private Placement will be subject to applicable resale restrictions, including a four month hold period from date of closing of the Private Placement under applicable Canadian securities laws. Completion of the private placement is subject to regulatory approval, including approval of the TSX Venture Exchange.
Brendan Yurik , CEO of Electric Royalties , stated: “We appreciate the participation of existing shareholders in this financing and are excited to welcome new investors to our growing shareholder base. With this financing Electric Royalties is now positioned to immediately pursue additional new royalty acquisitions. In parallel, with the successful renegotiation of the $17.5 million co-investment package announced May 26 , Electric Royalties is working towards closing of its first cash flowing royalty on the Middle Tennessee Mine located in the United States and will look to provide an update on the transaction in the coming weeks.”
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 more royalties currently under acquisition. The Company 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.
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