Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) announced that it has purchased an additional 0.5% Gross Revenue Royalty (GRR) on the Bissett Creek graphite project in Ontario, operated by Northern Graphite Corporation, in exchange for a cash payment of C$950,000.
The royalty company said together with its existing 1% GRR on the project, it now holds a 1.5% GRR on Bissett Creek.
"The Bissett Creek Project stands out from its North American counterparts because it possesses a high proportion of large/XL flake, making it well-suited for lucrative markets such as micronized graphite, expandable graphite, and high-purity flake graphite, which command premium prices," Electric Royalties CEO Brendan Yurik said in a statement.
"In contrast to many other graphite deposits, virtually all production from Bissett Creek will meet the standards for 'battery grade'," he added.
Electric Royalties also noted that it has entered into an amended and restated royalty agreement with Northern Graphite, in which Northern Graphite will make a separate fixed royalty payment to Electric Royalties amounting to C$200,000, payable in eight quarterly payments of C$25,000 for the next two years.
As well, the company reported that it has completed the C$1.4 million drawdown under a C$5 million convertible credit facility with Gleason & Sons LLC to fund the cash payment to acquire an additional 0.75% GRR on Penouta, and has also completed an additional C$1.05 million drawdown under the credit facility with the lender to fund the cash payment to acquire the additional 0.5% GRR on the Bissett Creek project.
It added that the loan has a term of three years and bears interest at a floating rate with a maximum interest rate of 12.5% per annum.
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.
Contact Sean at sean@proactiveinvestors.com