Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has finalized the acquisition of a 0.75% Gross Revenue Royalty (GRR) on the Punitaqui copper mine in Chile.
The company completed the transaction by paying C$3.05 million at closing, with an additional C$0.45 million due within 45 days.
The royalty also applies to third-party materials processed at Punitaqui until the end of 2027.
"This royalty acquisition is a strategic move for Electric Royalties, marking our first cash-flowing copper royalty within a diversified portfolio of nine clean energy metals," CEO Brendan Yurik stated.
“It is expected to provide us with a steady revenue stream from the Punitaqui copper mine, which is set to ramp up production.
“This should bolster revenue generation at Electric Royalties and position us for growth as our other royalty assets continue to progress along the development curve."
Electric Royalties financed the C$3.05 million payment through a drawdown from its amended C$10 million convertible credit facility.
This facility carries a floating interest rate capped at 12.5% and allows the lender to convert the principal into Electric Royalties' common shares at C$0.50 per share, subject to conditions.