Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has provided an update on royalties in its portfolio, including for the Penouta tin-tantalum mine located in Spain and the Seymour Lake lithium project in Ontario, Canada.
Penouta’s operator Strategic Minerals Europe announced that the Superior Court of Xustiza of Galicia (TSXG) has upheld its decision to suspend the section C permit for the mine.
Strategic is exploring avenues to reinstate the section C permit, including a potential appeal to the Supreme Court of Spain.
Electric Royalties highlighted that the TSXG decision does not impact the section B permit, which allows for the mining of tailings and waste deposits.
Upon the completion of Strategic's previously announced business combination with IberAmerican Lithium Corp, mining activities under the section B permit are expected to resume to generate near-term cash flow, Electric Royalties said.
"We are looking forward to the successful business combination by the operator of our Penouta royalty so that production under its section B permit can commence while the reinstatement of the section C permit is pursued,” Electric Royalties CEO Brendan Yurik said in a statement.
“Commencement of production would bring new revenue to the company, as we hold a 1.5% gross revenue royalty interest, and tin prices are up approximately 30% since production halted in October 2023."
Meanwhile, at the Seymour Lake project, operator Green Technology Metals has reported that the feasibility study for the project is progressing on schedule and is expected to be completed by the second half of 2024.
Additionally, the permitting process is progressing with the aim of obtaining all required permits and approvals by year-end, commencing timber harvesting in the winter months, and beginning early works for construction.
Electric Royalties holds a 1.5% net smelter royalty on Seymour Lake.
“We are also excited to see continued updates at Seymour Lake, one of the most advanced lithium projects in Ontario, progressing towards completion of a feasibility study and permitting,” CEO Yurik commented.
“And all developments across our portfolio of 40 royalties continue to come at no additional cost to Electric Royalties."
The full royalty update can be found here.