Electra Disposes of Non-Core Canadian Mineral Properties; Retains Royalty Interest
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) has amended its share purchase agreement with Kuya Silver Corporation to allow Kuya to acquire a 100% interest in Electra's remaining cobalt and silver assets in the Canadian Cobalt Camp. Kuya must pay $1 million by January 31, 2023, either in cash or in shares. The agreement includes a 2% royalty on net smelter returns and gives Electra the right of first offer for refining any base metal concentrates from these assets. This move aims to streamline Electra's focus on its cobalt sulfate refinery and battery materials strategy.
- Electra retains a 2% royalty on net smelter returns from Kuya's commercial production.
- The amendment allows Electra to concentrate on its cobalt sulfate refinery and related battery materials strategy.
- Kuya Silver Corporation must pay $1 million by January 31, 2023, which could pose cash flow risks if unpaid.
- Electra may lose potential revenue from the sale of the assets.
Highlights of the Amended Agreement
- Electra has granted to Kuya the right to acquire a 100 percent interest in its remaining assets in the Canadian Cobalt Camp.
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To exercise this right, Kuya is required to make a payment in cash or in the equivalent value of its shares totaling
to Electra on or prior to$1 million January 31, 2023 . The equivalent value of Kuya’s shares will be based on the share price equivalent to the earn-in volume weighted average price prior to the issuance. - Kuya has also agreed to enter into a royalty agreement with Electra whereby it will grant Electra a two percent royalty on net smelter returns from commercial production derived from the remaining assets.
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Electra will retain a right of first offer to refine any base metal concentrates produced from the Assets at Electra’s
Ontario refinery .
“Our initial agreement with Kuya was designed to allow us to maximize shareholder value for our exploration assets in
Electra and Kuya first entered into a share purchase and option agreement on
The Cobalt Camp
Electra held the largest land package in the historic silver-cobalt mining camp of
Over 600 million ounces of silver and 50 million pounds of cobalt were mined in the district along with copper and nickel over a 60-year period. Discovered in 1903, silver production peaked between 1919 to 1931. Exceptionally high-grade vein-style, native silver mineralization was mined at up to 185 oz/t Ag (5,200 g/t Ag) from surface and underground.
About Kuya Silver Corporation
Kuya Silver is a Canadian-based mineral exploration and development company with a focus on acquiring, exploring, and advancing precious metals in
About
Electra is a processor of low-carbon, ethically-sourced battery materials. Currently commissioning North America’s only cobalt sulfate refinery, Electra is executing a multipronged strategy focused on onshoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulfate production at Electra’s refinery located north of
Neither the
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Vice President, Investor Relations
info@ElectraBMC.com
1.416.900.3891
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FAQ
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