Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has increased its royalty interest in the producing Penouta tin-tantalum mine in Spain to 1.5%.
Operated by Strategic Minerals Europe, Penouta is the largest producer of tin and tantalum in the European Union, producing 121 tonnes in the first quarter of 2023, according to Electric Royalties.
“Gaining additional royalty exposure to a long-lived asset such as Penouta further strengthens the cash-generating portion of our royalty portfolio of clean energy metals,” Electric Royalties CEO Brendan Yurik commented in a statement.
“We are encouraged by the progress that Strategic Minerals has made improving operations at Penouta, steadily increasing primary concentrate production and sales.”
The company said it exercised its option to increase its existing royalty of 0.75% on the project to 1.5% in exchange for C$1.25 million.
Upon Electric Royalties’ receipt of C$1,666,667 in aggregate royalty revenue from the Gross Revenue Royalty, the royalty rate will be reduced to 1.25%.
Its royalty rate will be reduced to 1% upon the receipt of $3,333,334 in aggregate royalty revenue.
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 and 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.
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