Electric Royalties Ltd. Amends Terms for Acquisition of Lithium Royalty Portfolio

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF), on March 6, 2024, announced an amended and restated letter of intent with 1544230 Ontario Inc., MK Exploration Services Inc., and Gravel Ridge Resources Ltd. This agreement, dated March 5, 2024, encompasses the acquisition of a significant portfolio consisting of 22 royalty agreements alongside 36 prospective lithium properties situated in Ontario, Canada.

According to Brendan Yurik, CEO of Electric Royalties, the revised acquisition terms, significantly favorable given the current lithium market state, will reduce the overall cash acquisition cost to C$1,975,000. These revisions aim at optimizing the acquiring process of existing royalties and optioned properties, with projections of generating substantive revenue over the forthcoming years.

The venture is set amidst a backdrop where the demand for lithium, propelled by the surging electric vehicle market and renewable energy sectors, is anticipated to rise. Ontario’s favorable mining jurisdiction and the close-to-surface mineralization present a strategic advantage for lithium supply. Upon closure of this transaction, Electric Royalties is poised to bolster its portfolio, marking a strategic move in the clean energy sector.

In detail, the amended terms entail the issuance of 2,250,000 common shares and adjustments in cash payments considering various deductibles, aiming for a closing marked by extended due diligence periods and regulatory approvals. This strategic alignment underscores Electric Royalties's vision towards a diversified portfolio in a low geopolitical risk setting.