Electra Disposes of Non-Core Canadian Mineral Properties; Retains Royalty Interest
January 04 2023 - 6:00AM
Business Wire
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) today announced it has
signed an amendment (the “Amendment”) to a 2021 share purchase and
option agreement with Kuya Silver Corporation (“Kuya”) relating to
silver and cobalt exploration assets in the Canadian Cobalt Camp
(the “Assets”).
Highlights of the Amended Agreement
- Electra has granted to Kuya the right to acquire a 100 percent
interest in its remaining assets in the Canadian Cobalt Camp.
- To exercise this right, Kuya is required to make a payment in
cash or in the equivalent value of its shares totaling $1 million
to Electra on or prior to January 31, 2023. The equivalent value of
Kuya’s shares will be based on the share price equivalent to the
earn-in volume weighted average price prior to the issuance.
- Kuya has also agreed to enter into a royalty agreement with
Electra whereby it will grant Electra a two percent royalty on net
smelter returns from commercial production derived from the
remaining assets.
- Electra will retain a right of first offer to refine any base
metal concentrates produced from the Assets at Electra’s Ontario
refinery.
“Our initial agreement with Kuya was designed to allow us to
maximize shareholder value for our exploration assets in Ontario,
given our primary focus on recommissioning North America’s first
cobalt sulfate refinery,” said Trent Mell, Electra’s CEO.
“Accelerating the terms of the initial agreement with Kuya allows
us to focus on advancing our strategy of developing an integrated
battery materials complex that combines the production of cobalt,
nickel, and manganese sulfates with the recycling of battery black
mass.”
Electra and Kuya first entered into a share purchase and option
agreement on February 26, 2021 whereby Kuya acquired a 100 percent
interest in the property package surrounding the Kerr Lake area for
$4 million and an option to earn up to a 70 percent interest in
Electra’s remaining assets for an additional $1 million. Under the
original agreement, Kuya was required to make $1 million in
additional payments and invest $4 million in exploration
activities. Pursuant to the terms of the Amendment, Kuya will also
be assuming management of any ongoing obligations and liabilities
associated with the Assets.
The Cobalt Camp
Electra held the largest land package in the historic
silver-cobalt mining camp of Cobalt, Ontario, with more than 10,000
hectares and over 50 past-producing mines, including some of the
region’s largest high-grade silver producers. The Company conducted
extensive exploration from 2017 to 2019 that included creating a
proprietary 3D geological model based on digital compilation of
historic mine workings, integrated with exploration drilling,
geophysical data and surface bedrock geology maps.
Over 600 million ounces of silver and 50 million pounds of
cobalt were mined in the district along with copper and nickel over
a 60-year period. Discovered in 1903, silver production peaked
between 1919 to 1931. Exceptionally high-grade vein-style, native
silver mineralization was mined at up to 185 oz/t Ag (5,200 g/t Ag)
from surface and underground.
About Kuya Silver Corporation
Kuya Silver is a Canadian-based mineral exploration and
development company with a focus on acquiring, exploring, and
advancing precious metals in Peru and Canada.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently commissioning North America’s only cobalt
sulfate refinery, Electra is executing a multipronged strategy
focused on onshoring the electric vehicle supply chain. Keys to its
strategy are integrating black mass recycling and nickel sulfate
production at Electra’s refinery located north of Toronto,
advancing Iron Creek, its cobalt-copper exploration-stage project
in the Idaho Cobalt Belt, and expanding cobalt sulfate processing
into Bécancour, Quebec. For more information visit
www.ElectraBMC.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects', “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR at www.sedar.com. Although Electra
Battery Materials Corporation believes that the information and
assumptions used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, Electra Battery Materials Corporation disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230104005381/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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