Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has provided investors with an update on its royalty portfolio.
"Despite softer commodity markets, we're still bullish on clean energy metal demand fundamentals and believe that governments will increasingly prioritize domestic sources of these critical metals,” Electric Royalties CEO Brendan Yurik said in a statement.
“This is particularly true for North America, Europe, and Australia, where the vast majority of our royalty interests lie and where continued progress continues to be made across the portfolio.”
At the Råna nickel-copper-cobalt project in Norway, on which Electric Royalties holds a 1% net smelter royalty, drilling has identified new zones of nickel sulphide mineralization, some in areas previously considered to not be prospective.
At the Chubb lithium project in Quebec, Burley Minerals released drill results which demonstrated that spodumene mineralization exceeds a strike length of 600 meters and remains open down plunge.
One drill hole intersected cesium-bearing mineral pollucite in the Main Dyke, indicating an evolved lithium-cesium-tantalum pegmatite system which Burley believes has the potential to add significant value to the project. Electric Royalties holds a 2% gross metal royalty on the Chubb project.
At the Graphite Bull graphite project in Australia, on which Electric Royalties holds a 0.75% gross revenue royalty, electrochemical test work has confirmed that uncoated purified spherical graphite made from concentrate from the project is suitable for the manufacturing of lithium-ion battery anodes.
Meanwhile, the Seymour Lake lithium project in Ontario is being advanced into production pending a final investment decision and the securing of permits.
“Seymour Lake has the potential to be the first lithium producer in Ontario, with a feasibility study slated for completion later this year and potential commencement of production in two years,” Yurik said.
“It is the most advanced lithium project in Ontario, with an offtake agreement with South Korean battery maker LG Energy Solution to acquire 25% of the concentrate produced from Seymour Lake's first five years of production.”
The CEO highlighted that all of these positive developments, as always, come at no cost to Electric Royalties. “We are pleased to see our portfolio of 22 royalties increasingly weighted towards advanced development and production,” he said.
The full royalty portfolio update can be found here.