VANCOUVER, BC, Dec. 8, 2021 /CNW/ - Electric Royalties Ltd.
(TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties" or the "Company")
is pleased to provide the following asset update on its rapidly
developing royalty portfolio.
Brendan Yurik, CEO of Electric
Royalties, states, "It's been an incredible period of growth since
our last asset update in September and we've had several more
developments across the assets comprising our battery metal royalty
portfolio." Highlights include:
- Authier Lithium Royalty - Sayona Mining (ASX: SYA) is
working on a scoping study to produce spodumene concentrate,
stating that they are targeting a start in 2023 by refurbishing the
North American Lithium ("NAL") mine and integrating it with the
Authier project. Sayona
recently completed a 25 hole, 3,908 meter drill program to expand
resources at Authier.
Promising results from this program include drill hole
AL–21–14, located some 250 meters west of the Authier deposit and potential open pit,
returned a spodumene intersection assaying 9 meters @ 1.46%
- Graphmada Graphite Royalty – Greenwing Resources (ASX:
GW1) is currently undertaking a 3,000 meter drill program to
further increase the size of the Graphmada deposit and to progress
studies aimed at restarting large scale mining and processing
- Cancet Lithium Royalty – Winsome Resources (ASX: WR1)
completed an IPO in November and completed an A$18 million financing to advance the Cancet
lithium project in 2022.
- Seymour Lake Lithium Royalty – Green Technology Metals
(ASX: GT1) which signed a joint venture agreement to advance the
Seymour Lake project earlier this year, completed an A$24 million capital raise and IPO in November
and are well funded to advance the asset. Green Technology
Metals is currently undertaking a step-out 11 hole, 3,500 meter
diamond drilling program at Seymour Lake.
- Bissett Creek Graphite Royalty – Northern Graphite
Corporation (TSXV: NGC) (OTCQB: NGPHF) announced the acquisition of
two producing graphite mines which will help support offtake and
funding negotiations at Bissett Creek in 2022. Northern Graphite
also continued to demonstrate excellent performance of its Bissett
Creek concentrate in battery testing in November.
- Battery Hill Manganese Royalty – Manganese X Energy
(TSXV: MN) continues to improve processing of high grade battery
manganese critical for EV / stored energy markets in support of a
preliminary economic assessment ("PEA") which is currently
"It's been a tremendous year overall with a heavy weighting
towards lithium within our current portfolio and lithium prices up
substantially this year. We anticipate major catalysts across most
of our portfolio in 2022 so despite the robust asset advancement
we've seen in 2021, we're expecting 2022 to be even more exciting.
Since September, operators of the projects on which we hold
royalties have raised over $40
million for the advancement of those assets, all occurring
at no cost or dilution to Electric Royalties. From well-funded
development plans for the Cancet and Seymour Lake projects, to
upcoming economic studies at Battery Hill, to the progress on
moving Authier and Graphmada
toward production, 2022 is shaping up to be a transformational
Authier Lithium Royalty – 0.5% of Gross Revenue
Sayona Mining Limited ("Sayona") (ASX: SAY)
announced as part of its quarterly update that the integration of
NAL with Authier will transform
both operations and create a world–scale Quebec based lithium hub. Sayona stated
that they are targeting production of concentrate from 2023 (see
Sayona news release dated August 30,
2021). Sayona will also advance plans for downstream
processing in Quebec by taking
advantage of the province's environmental and economic benefits
which include low cost, renewable hydropower, an established mining
services industry and proximity to the North American battery
market (see Sayona news release dated October 29, 2021).
In addition, Sayona released drilling results at the
Authier project as part of a
program to increase the confidence and quality of the lithium
mineralisation at the project (see Sayona news release dated
December 1, 2021).
- A 25–hole, 3,908 meter diamond drill program was undertaken
with the results of the first 22 holes received. Drilling was
conducted by Les Forages Pikogan, a company owned by the local
First Nations community, demonstrating Sayona's commitment to the
First Nations community.
- Drill hole AL–21–14, located 250 meters west of the
Authier deposit and potential open
pit, returned spodumene pegmatites assaying 9 meters @ 1.46%
Li2O from 144.9 meters depth. Three additional holes
have been completed to infill this new area of mineralisation, with
assay results pending.
- Follow up drilling at Authier
will be planned after the receipt of assay results, with priority
work including updated resource estimates, updated definitive
feasibility study and integration of the new data with Sayona's
Abitibi lithium hub.
Graphmada Graphite Royalty – 2.5% of Gross Concentrate
Greenwing Resources ("Greenwing") (ASX: WR1)
announced an increase in the deposit size at its wholly owned
Graphmada Mining Complex in Madagascar (see Greenwing news release dated
November 19, 2021).
- An augur program of 180 holes (2,042 meters) at the
Ambatofafana Zone has extended the strike of the Graphmada deposit
to the southern end of the mining leases.
- A 3,000 meter diamond drilling program will commence this month
with the aim to further increase the extent of the known
mineralisation at the project.
- The ongoing expansion at Graphmada together with the history of
production of high quality graphite concentrates positions
Greenwing to rapidly progress the planning and development of the
project. The company states that given the history of production at
Graphmada, coupled with recent deposit expansion, they are
positioned to rapidly progress studies contemplating a future
throughput of up to 40,000 tonnes per annum production of large
flake, clean concentrate suitable for sale to the growing green
energy and advanced materials markets.
Cancet Lithium Royalty – 1% of Net Smelter Revenue
Winsome Resources ("Winsome") (ASX: WR1) commenced trading on the
Australian Securities Exchange, following an Initial Public
Offering (IPO) which raised $18
million (see Winsome news release dated November 30, 2021). Winsome will utilise the
funds for an intensive exploration and drilling campaign at its
projects in the James Bay region
of Quebec, Canada, concentrating
its efforts on establishing a maiden resource of high quality
spodumene concentrate that is suitable for conversion across
multiple battery applications. Winsome currently has three wholly
owned projects - Cancet, Adina and Sirmac-Clapier. Drilling at the
most advanced project, Cancet, indicates a potentially shallow,
open pitable lithium deposit that would be located close to
established road and power infrastructure.
Seymour Lake Lithium Royalty – 1.5% of Net Smelter
Green Technology Metals ("Green Technology") (ASX:
GT1) raised gross proceeds of A$24
million to advance the Seymour Lake project. Green
Technology is now successfully trading on the Australian Stock
Exchange (see Green Technology news release dated November 8, 2021).
In addition, Green Technology has announced that a step-out,
11-hole, 3,500 meter diamond drilling program at Seymour is to
commence in the coming weeks and the program is targeting a
substantial increase in the extent of the existing deposit (see
Green Technology news release dated November
Bissett Creek Graphite Royalty – 1% of Gross Revenue and an
option to increase the royalty by 0.5%
Corporation ("Northern Graphite") (TSXV: NGC) announced the signing
of binding purchase and sale agreements to acquire 100% ownership
of the producing Lac des Iles graphite mine in Quebec from the Imerys Group and the Okanjande
graphite deposit/Okorusu processing plant in Namibia from the Imerys Group and its joint
venture partner for approximately US$40
million (see Northern Graphite news release dated
December 2, 2021). Northern Graphite
will become the only significant North American graphite producer
and will acquire an existing customer base and market share. The
acquisitions provide a platform from which to finance and develop
Northern Graphite's Bissett Creek deposit.
Northern Graphite also announced that battery anode material
("BAM") manufactured from its Bissett Creek concentrates
demonstrated excellent electrochemical performance during recent
battery testing by ProGraphite in Germany. ProGraphite concluded that Northern
Graphite's high purity anode material is very well suited for the
manufacture of high capacity, durable, long-life lithium-ion
batteries (see Northern Graphite news release dated November 11, 2021).
Battery Hill Manganese Royalty – 2% of Gross Revenue
Manganese X Energy Corp. ("Manganese X Energy") (TSXV: MN)
announced that recent processing and metallurgical work has
resulted in significant cost reductions in the production of
high-grade battery material (see Manganese X Energy news release
dated October 12, 2021). This
work is an integral part of the upcoming PEA, as the metallurgical
processing is a key economic component of the project. The PEA will
characterize and assess the economic and commercial viability of
producing high-purity, battery-grade manganese products from the
Battery Hill project located near Woodstock, New Brunswick.
- Kemetco Research has completed a major milestone for Battery
Hill with the delivery of a complete process flowsheet.
Locked-cycle testing has been initiated to confirm the high
projected recovery rate of leached manganese into a high purity
manganese sulphate monohydrate (HPMSM) product.
- Subsequent testing has focused on an innovative purification
process to maximize recovery of the extracted manganese and to
reduce costs and improve the environmental footprint.
David Gaunt, P.Geo., a qualified
person who is not independent of Electric Royalties, has reviewed
and approved the technical information in this release.
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
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, with an
additional royalty acquisition in progress. 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
On Behalf of the Board of Directors,
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 and the
companies that own or operate said projects.
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
SOURCE Electric Royalties Ltd.