Electric Royalti Stock Price, News & Analysis

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 has entered into a definitive agreement to acquire a 0.75% Gross Revenue Royalty on the producing Punitaqui copper mine in Chile for C$3.5 million. The mine, which resumed operations in May 2024, is expected to reach a production rate of 19-23 million pounds of copper in concentrate annually. The project includes four satellite copper resources with existing infrastructure and key permits. BMR is currently executing underground drilling at Cinabrio and San Andres mines, with plans to commence production at Cinabrio Norte in H2 2025. The company will not proceed with the previously announced Minera Cobre Verde copper stream.

Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) has provided updates on seven royalties in its portfolio. Key highlights include:

• Kingsrose Mining earned a 51% interest in the Råna nickel-copper-cobalt project in Norway and plans to increase it to 65%.
• Significant graphite intervals were discovered at the Millennium copper-cobalt project in Queensland, Australia.
• Ongoing drilling at the Graphite Bull project in Western Australia aims to support a mineral resource estimate in Q4 2024.
• A priority exploration target has been identified at the Ruddy lithium project in Ontario, Canada.
• Manganese X Energy continues work on the Battery Hill manganese project in New Brunswick, Canada, preparing for a prefeasibility study.
• Greenwing Resources is seeking strategic investment to restart the Graphmada graphite mine in Madagascar.
• Strategic Minerals Europe Corp. has suspended operations at the Penouta tin-tantalum mine in Spain and initiated a voluntary structured insolvency process.

Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) has signed a binding agreement to acquire a copper stream from Minera Cobre Verde in Chile for US$2.1 million. The stream grants Electric Royalties the right to acquire 76,000 pounds of copper monthly at a fixed price of US$2.75 per pound for four years. The transaction is cash-settled and not dependent on actual production. There's an opportunity to double the stream volume for an additional US$2.1 million. The deal aims to provide immediate cash flow and leverage to potentially increasing copper prices. The stream could generate monthly revenue of US$162,450 to US$324,900 based on projected copper prices.

Electric Royalties (TSXV:ELEC, OTCQB:ELECF) announced a significant expansion in copper resources at World Copper's Zonia Project in Arizona. The updated mineral resource estimate includes 686 million pounds of copper in the Indicated category and 300 million pounds in the Inferred category. This expansion is largely due to using a higher copper price and refined mineralization models.

World Copper is advancing the project into feasibility, with copper cathode production expected to commence within 48 months. The company is also working on a verification drill program for historical leach pads, which could lead to pre-production cash flow for Electric Royalties. Additionally, resource expansion potential has been identified at the Zonia Norte target.

Electric Royalties holds a 0.5% gross revenue royalty on Zonia and an option to acquire a 1% gross revenue royalty on Zonia Norte.

Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) has appointed Red Cloud Financial Services Inc. to provide non-exclusive financial advisory and promotional services. Red Cloud, a Toronto-based firm, will assist Electric Royalties in accessing capital markets and enhancing its corporate profile. The engagement begins September 1, 2024, for an initial six-month term with a monthly fee of $10,000. Services include identifying potential financing opportunities, advising on marketing strategies, and facilitating investor communications. Red Cloud will not receive equity compensation, and the engagement is subject to TSX Venture Exchange approval. This partnership aims to strengthen Electric Royalties' market presence and financial positioning.

Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) has announced that Gleason & Sons has chosen to convert C$217,479.02 of accrued interest on the company's convertible credit facility into 1,279,288 common shares. The conversion price is set at C$0.17 per share. This transaction, subject to TSX Venture Exchange approval, is expected to be completed in September 2024.

The conversion is treated as a 'Shares for Debt' transaction under TSXV Policy 4.3. The newly issued shares will have resale restrictions, including a four-month and one-day hold period under Canadian securities laws and a six-month hold period under U.S. securities laws. The transaction is exempt from 'related party transaction' requirements under TSXV Policy 5.9 and MI 61-101.

Electric Royalties has released updates on its royalties in lithium, copper, cobalt, and tin projects. The company highlights progress at the Penouta Tin-Tantalum Mine, where production under the section B permit is set to commence, potentially generating early cash flow. However, the section C permit remains suspended due to environmental complaints. The Seymour Lake Lithium Project is advancing towards a feasibility study and permitting, with a new drill program underway to extend the mine life. Millennium Copper-Cobalt Project has initiated a drilling program targeting the Fountain Range-Quamby Fault Zone. The Cancet Lithium Project secured A$25 million for expedited follow-up drilling and prospecting. All developments come at no additional cost to Electric Royalties.

Stefan Gleason, an investor, has filed an early warning report following his acquisition of 2,753,220 additional shares of Electric Royalties (TSXV:ELEC, OTCQB:ELECF) via a loan interest conversion totaling C$578,176.37. This acquisition increases his stake to 28.05% of the company's issued and outstanding shares, up from 26.05%. Gleason has expressed confidence in Electric Royalties, noting the company's low overhead and a significant increase in its asset count to 72, including 40 royalties across nine metals. This filing follows a previous report on May 30, 2024, under Canadian securities early warning provisions.