Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has updated investors on advancements made across its royalty portfolio which is set to expand significantly pending the company’s acquisition of 22 royalty agreements and 36 prospective lithium properties in Ontario.
"It is an encouraging time for Electric Royalties and our shareholders as excellent progress is being made on several of our core holdings,” CEO Brendan Yurik said.
He highlighted the Seymour Lake lithium project, where information from the current drill program is being incorporated in the upcoming feasibility study, which is expected to be completed in the fourth quarter of 2024.
Electric Royalties holds a 1.5% net smelter royalty on the Seymour Lake project.
“The feasibility study milestone will position Seymour Lake as one of the most advanced lithium projects in Ontario,” Yurik said.
“Similarly, at the Mont Sorcier iron and vanadium project, continued positive metallurgical results will be used in the development of the project's flow sheet, which is an important component to its feasibility study, also expected at the end of 2024.”
Located near Chibougamau, Québec, Electric Royalties holds a 1% gross metal royalty on vanadium production at Mont Sorcier.
At the Battery Hill Manganese project, where Electric Royalties holds a 2% gross metal royalty, Manganese X Energy has made a permit application for a 12 to 15 diamond drill hole program expected to commence this spring.
The program is designed to upgrade key areas of mineralization to the Measured and Indicated Resource status ahead of commencing a pre-feasibility study in the third quarter.
Meanwhile, Buxton Resources has kicked off Aboriginal Heritage Surveying at the Graphite Bull project in Western Australia, on which Electric Royalties has a 0.75% gross revenue royalty.
The survey aims to provide clearances to the south of the existing resource, to allow extensional drilling at depth, and to the east where the potential exists for additional tonnes to be defined at shallow depths.
CEO Yurik also provided an update on the company’s pending acquisition, first announced in November 2023.
"Related to this pending acquisition, we've now received shareholder approval to increase the existing credit facility on favourable terms with our largest shareholder Stefan Gleason who owns approximately 22% of the outstanding shares of the company,” he said.
“The C$10 million credit facility will enable the company to complete the acquisition currently underway and leverage opportunities in the market to pursue other accretive transactions in the near term."
The full royalty project portfolio update can be found here.