Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has informed shareholders that its portfolio project Battery Hill is getting a funding boost from its operator Manganese X Energy Corp (TSX-V:MN, OTCQB:MNXXF).
Vancouver-based Electric Royalties holds a 2% gross metal royalty on the manganese project in New Brunswick, Canada.
Manganese X Energy announced earlier this week its plan to complete a non-brokered private placement offering to raise up to C$2.1 million.
The funding includes a C$2 million commitment from renowned mining investor Eric Sprott.
Proceeds from the offering will primarily be allocated to advancing development work at Battery Hill, with a focus on completing an upcoming pre-feasibility study. A preliminary economic assessment conducted in 2022 estimated gross annual revenue of US$177 million over a 47-year mine life, with a payback period of less than three years.
Brendan Yurik, CEO of Electric Royalties, welcomed the news.
“This private placement led by Eric Sprott's $2 million investment underscores our shared confidence in the Battery Hill Project and its potential to become a leading North American source of high-purity manganese for the battery industry,” Yurik said in a statement.
“The successful completion of the pre-feasibility study would represent an important development milestone for Battery Hill and is expected to come at no cost to Electric Royalties.”
Battery Hill is positioned to meet growing demand for high-purity manganese, a critical component in electric vehicle batteries and energy storage systems.