Electric Royalties Records First Royalty Cash Flow

Rhea-AI Summary

Electric Royalties Ltd. has announced that the special purpose vehicle, Sprott Resource Streaming and Royalty Corp, has made its first royalty payment following the acquisition of the Middle Tennessee Mine. Electric Royalties retains a 25% interest in the royalty. The zinc prices have risen over 25% since the initial agreement, indicating a favorable market environment. The company highlights that it received its first royalty revenue within 18 months of going public, a significant achievement compared to industry averages.

Positive

• Received first royalty payment from Middle Tennessee Mine within 18 months of going public.
• Zinc prices have increased by more than 25% since the acquisition.
• Strategic partnership with Sprott Streaming for increased royalty income.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / October 28, 2021 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce further to the recently closed acquisition of the Middle Tennessee Mine ("MTM") royalty acquired via special purpose vehicle ("SPV") Sprott Resource Streaming and Royalty Corp, or "Sprott Streaming", 75% and Electric Royalties 25%, that the SPV has received its first royalty payment. The SPV will make distributions to both Sprott Streaming and Electric Royalties on at least a quarterly basis. Funds controlled by Sprott Streaming co-invested and acquired 75% of the MTM Royalty for C$13.5 million with Electric Royalties retaining an option to acquire an additional 25% royalty interest from Sprott Streaming (see Company news release dated August 11, 2021).

MTM Zinc Royalty Cash Flow Highlights

• Zinc prices ¹ have increased by more than 25% since the initial LOI was announced and are up over 14% since closing of the acquisition on August 11, 2021
• SPV to receive royalty income from a sliding scale gross revenue royalty on all zinc production
• First class operator (Nyrstar) with proven experience operating and expanding large mines, part of the Trafigura group.

Brendan Yurik, CEO of Electric Royalties commented, "Electric Royalties has received its first royalty revenue within 18 months of going public. This compares very favorably to the common situation for mine developers, whereby it takes, on average, over 15 years to move an asset from exploration to production and where the vast majority of projects never become a mine. We also note the 14% increase in zinc prices since we closed the MTM acquisition. We are in a very strong metal price environment and see a multi-decade opportunity in clean energy metals that will be required for the global transition to rebuild the world's infrastructure and support a decarbonized global economy."

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 17 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.

[1] https://markets.businessinsider.com/commodities/zinc-price/usd

SOURCE: Electric Royalties Ltd.

View source version on accesswire.com:
https://www.accesswire.com/670019/Electric-Royalties-Records-First-Royalty-Cash-Flow

FAQ

What is the significance of Electric Royalties' first royalty payment?

Electric Royalties received its first royalty payment from the Middle Tennessee Mine, marking a significant milestone within 18 months of going public, which is much faster than the industry average.

How has the acquisition of Middle Tennessee Mine impacted Electric Royalties?

The acquisition allows Electric Royalties to benefit from rising zinc prices, which have increased over 25% since the initial agreement, thereby enhancing its revenue potential.

What percentage of the Middle Tennessee Mine royalty does Electric Royalties own?

Electric Royalties owns a 25% interest in the royalty from the Middle Tennessee Mine.

Who is the operator of the Middle Tennessee Mine?

The Middle Tennessee Mine is operated by Nyrstar, a proven operator in the mining industry, part of the Trafigura group.

What are Electric Royalties' future prospects in the clean energy metals market?

Electric Royalties sees strong opportunities in the clean energy metals market, driven by increasing demand for commodities essential for electric vehicles and renewable energy technologies.