Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) announced that it has drawn C$3.05 million from its C$10 million amended convertible credit facility with Gleason & Sons LLC.
The funds will be used to partially finance the acquisition of a 0.75% gross revenue royalty (GRR) on the producing Punitaqui copper mine in Chile.
The loan, bearing interest tied to the US Secured Overnight Financing Rate (SOFR) plus 7% (capped at 12.5%), has a maturity date of January 12, 2028.
The lender has the option to convert the loan and accrued interest into Electric Royalties' common shares, with a conversion price subject to TSX Venture Exchange approval.
The company intends to grant the lender security for the facility, including in the Punitaqui GRR and a 1% gross metal royalty on vanadium production from the Mont Sorcier Project in Québec.
Electric Royalties continues to expand its diversified portfolio of 40 royalties across various commodities, positioning it as a key player in the clean energy transition.