Electric Royalties Announces Drawdown Under Convertible Credit Facility
Electric Royalties announces a C$3,050,000 drawdown from its C$10,000,000 convertible credit facility with Gleason & Sons The funds will partially finance the acquisition of a 0.75% Gross Revenue Royalty on Chile's Punitaqui copper mine. The loan bears interest at SOFR + 7% (maximum 12.5%), due January 12, 2028. The lender can convert the outstanding amount into company shares at specific conversion prices, with the base price being C$0.50 or higher based on market conditions. The company will grant security interests in both the Punitaqui GRR and its 1% Gross Metal Royalty on the Mont Sorcier Project's vanadium production.
Electric Royalties annuncia un prelievo di C$3.050.000 dalla sua linea di credito convertibile di C$10.000.000 con Gleason & Sons. I fondi finanzieranno parzialmente l'acquisizione di una royalty sul reddito lordo dell'0,75% sulla miniera di rame Punitaqui in Cile. Il prestito ha un tasso di interesse pari a SOFR + 7% (massimo 12,5%), in scadenza il 12 gennaio 2028. Il prestatore può convertire l'importo residuo in azioni della società a prezzi di conversione specifici, con un prezzo base di C$0,50 o superiore in base alle condizioni di mercato. L'azienda concederà diritti di garanzia sia sulla GRR di Punitaqui che sulla propria royalty sul metallo lordo dell'1% sulla produzione di vanadio del progetto Mont Sorcier.
Electric Royalties anuncia un desembolso de C$3,050,000 de su línea de crédito convertible de C$10,000,000 con Gleason & Sons. Los fondos financiarán parcialmente la adquisición de una royalty del 0.75% sobre los ingresos brutos de la mina de cobre Punitaqui en Chile. El préstamo tiene un interés de SOFR + 7% (máximo 12.5%), con vencimiento el 12 de enero de 2028. El prestamista puede convertir el monto pendiente en acciones de la empresa a precios de conversión específicos, siendo el precio base de C$0.50 o superior según las condiciones del mercado. La empresa otorgará derechos de garantía tanto sobre la GRR de Punitaqui como sobre su royalty del 1% sobre la producción de vanadio del Proyecto Mont Sorcier.
일렉트릭 로열티가 글리슨 앤 선즈(Gleason & Sons)와의 C$10,000,000 전환 신용 시설에서 C$3,050,000 인출을 발표했습니다. 이 자금은 칠레 푸니타키(Punitaqui) 구리 광산에 대한 0.75% 총 수익 로열티 인수를 부분적으로 금융 지원할 것입니다. 대출은 SOFR + 7% (최대 12.5%)의 이자를 발생시키며 2028년 1월 12일 만기됩니다. 대출기관은 잔액을 특정 전환 가격으로 회사 주식으로 전환할 수 있으며, 기준가는 시장 상황에 따라 C$0.50 이상입니다. 회사는 푸니타키 GRR 및 몽 소르시어(Mont Sorcier) 프로젝트의 바나듐 생산에 대한 1% 총 금속 로열티에 대해 담보권을 부여할 것입니다.
Electric Royalties annonce un tirage de C$3,050,000 de sa ligne de crédit convertible de C$10,000,000 avec Gleason & Sons. Les fonds financeront partiellement l'acquisition d'une royalty de 0,75% sur les revenus bruts de la mine de cuivre de Punitaqui au Chili. Le prêt porte intérêt à SOFR + 7% (maximum 12,5%), échéant le 12 janvier 2028. Le prêteur peut convertir le montant en souffrance en actions de l'entreprise à des prix de conversion spécifiques, le prix de base étant de C$0,50 ou plus selon les conditions du marché. La société accordera des droits de garantie sur la GRR de Punitaqui ainsi que sur sa royalty de 1% sur la production de vanadium du projet Mont Sorcier.
Electric Royalties gibt eine Abhebung von C$3,050,000 aus seiner C$10,000,000 wandelbaren Kreditlinie mit Gleason & Sons bekannt. Die Mittel werden teilweise die Akquisition einer 0,75% Bruttoumsatzroyalty für die Kupfermine Punitaqui in Chile finanzieren. Das Darlehen hat einen Zinssatz von SOFR + 7% (maximal 12,5%) und ist am 12. Januar 2028 fällig. Der Kreditgeber kann den ausstehenden Betrag zu bestimmten Umwandlungspreisen in Unternehmensanteile umwandeln, wobei der Basispreis bei C$0,50 oder höher basierend auf den Marktbedingungen liegt. Das Unternehmen gewährt Sicherheiten an sowohl der Punitaqui GRR als auch seiner 1% Bruttometallroyalty auf die Vanadiumproduktion des Mont Sorcier Projekts.
- Secured C$3.05M in financing for mine royalty acquisition
- Acquisition of 0.75% Gross Revenue Royalty on producing Punitaqui copper mine
- Additional debt burden with floating interest rate up to 12.5%
- Potential shareholder dilution through convertible loan terms
- Need to pledge royalty assets as security for the loan
VANCOUVER, BC / ACCESSWIRE / November 26, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") announces that it has elected to draw down C
Loans drawn under the Credit Facility bear interest ("Interest") at a floating rate (United States Secured Overnight Financing Rate as published by the New York Federal Reserve ("SOFR") +
The Credit Facility is a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Credit Facility is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's common shares are not listed on a specified market. The Company received disinterested shareholder approval of the Credit Facility at the Company's special meeting of shareholders held on March 19, 2024 in accordance with MI 61-101.
Upon and subject to closing of the Punitaqui GRR acquisition, the Company intends to grant the Lender security in the Punitaqui GRR, and has also determined to grant the Lender security in its
The Drawdown is subject to completion of documentation, the approval of the TSXV, and other customary closing conditions.
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 40 royalties in lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper across the world. 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 toward a decarbonized global economy.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: Brendan.yurik@electricroyalties.com
https://www.electricroyalties.com/
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.
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 projected future production, 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.
Although the Punitaqui Project is a past producer with significant infrastructure still in place, the projected production and production decision by Battery Mineral Resources is not based on a feasibility study of mineral reserves demonstrating current economic and technical viability of the Punitaqui Project and furthermore Electric Royalties is not aware of any preliminary economic assessment or other study having been completed in respect of the projected production or production decision by Battery Mineral Resources with respect to the Punitaqui Project. As such, there is a higher degree of risk and uncertainty associated with the production decision, including increased uncertainty of achieving any particular level of production or recovery of minerals or the cost of such production or recovery. Historically, projects that are not based on a feasibility study have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. A failure to commence or maintain production at the Punitaqui Project would adversely impact Electric Royalties' potential future cash flow and profitability.
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, 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 sedarplus.ca and at otcmarkets.com.
SOURCE: Electric Royalties Ltd.
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