Electric Royalties Closes Rana Nickel Royalty Acquisition

Rhea-AI Summary

Electric Royalties Ltd (TSXV:ELEC)(OTCQB:ELECF) has completed the acquisition of a 1% net smelter revenue royalty on the Rana Nickel Project from Scandinavian Resource Holdings and Global Energy Metals Corp. The transaction involved issuing 1,800,000 common shares and a cash payment of $90,000 to SRH, plus issuing 200,000 shares and a $10,000 payment to GEMC. The project is located in Northern Norway and comprises four exploration licenses totaling 25 square kilometers. The deal aims to enhance Electric Royalties' portfolio of 18 royalties, tapping into the growing demand for electric vehicle and renewable energy commodities.

Positive

• Acquisition of a 1% net smelter revenue royalty on the Rana Nickel Project enhances portfolio.
• Transaction positions company well to benefit from increasing demand for nickel in electric vehicles.
• Strategic location of the Rana Project in a low geopolitical risk jurisdiction.

Negative

• Issuance of 1,800,000 common shares may lead to dilution of existing shares.
• Transaction remains subject to customary closing conditions including TSX-V approval.

VANCOUVER, BC / ACCESWIRE / January 27, 2022 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce closing of the previously announced Rana Nickel Royalty acquisition (see news releases dated October 19, 2021 and December 16, 2021) with Scandinavian Resource Holdings ("SRH") and Global Energy Metals Corp. ("GEMC") to acquire a 1% net smelter revenue royalty on the Rana nickel project (the "Rana Project" or "Rana"). The Rana Project comprises four exploration licenses totaling 25 square kilometers in the Råna mafic-ultramafic intrusion in Northern Norway, including the past producing Bruvann Nickel mine.

The Company has issued 1,800,000 common shares of the Company ("Consideration Shares") to Casper Peterson, Jeroen Van Gool, Martin Blakeman and Winton Willesee (as nominees for SRH) and made a cash payment of $90,000 to SRH, issued 200,000 Consideration Shares to GEMC and made a cash payment of $10,000 to GEMC. The Consideration Shares will be subject to a voluntary escrow lock-up agreement which provides that 50% of the common shares will be subject to a hold period of 4 months and one day, 25% for 8 months and the remaining 25% for 12 months. The transaction remains subject to customary closing conditions including TSX-V approval.

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 & 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 growing portfolio of 18 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.

For further information, please contact:
Brendan Yurik Tel: (604) 364‐3540
Brendan.yurik@electricroyalties.com
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. 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.

View source version on accesswire.com:
https://www.accesswire.com/685745/Electric-Royalties-Closes-Rana-Nickel-Royalty-Acquisition

FAQ

What is the Rana Nickel royalty acquisition by Electric Royalties?

Electric Royalties acquired a 1% net smelter revenue royalty on the Rana Nickel Project from Scandinavian Resource Holdings and Global Energy Metals Corp.

How much did Electric Royalties pay for the Rana Nickel Acquisition?

Electric Royalties paid $90,000 in cash and issued a total of 2,000,000 common shares as part of the acquisition.

What does the Rana Nickel Project involve?

The Rana Nickel Project consists of four exploration licenses totaling 25 square kilometers in Northern Norway, encompassing the past-producing Bruvann Nickel mine.

How will the Rana acquisition impact Electric Royalties' portfolio?

The acquisition adds to Electric Royalties' growing portfolio of 18 royalties, positioning the company to capitalize on the rising demand for nickel and other commodities used in electric vehicle production.

Is the Rana Nickel acquisition finalized?

The transaction is subject to customary closing conditions, including approval from the TSX Venture Exchange.