Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) announced that it has closed its brokered private placement and concurrent non-brokered private placement raising gross proceeds of approximately C$2.5 million.
"With strong participation in this financing from our existing shareholders along with some supportive new shareholders, Electric Royalties is well positioned to capitalize on the strategic opportunities we see before us,” Brendan Yurik, Electric Royalties CEO, said in a statement.
"Following the positive news announced in recent weeks in connection with our flagship lithium and manganese royalties, we envision other important developments and milestones coming from our royalty portfolio this year."
The proceeds from the financings will be used to complete the remaining payment of C$450,000 for the acquisition of a 0.75% Gross Revenue Royalty on the Punitaqui copper mine in Chile, as well as for general corporate purposes.
The brokered private placement involved the sale of approximately 12.25 million units at C$0.18 for gross proceeds of approximately C$2.2 million. Canaccord Genuity (TSX:CF, LSE:CF) and Red Cloud Securities acted as agents for the offering.
The non-brokered private placement with Globex Mining Enterprises raised an additional C$300,000 through the sale of approximately 1.67 million units priced at C$0.18 per unit.
Each unit sold in both financings consisted of one share and one warrant granting the holder the right to purchase an additional share at an exercise price of C$0.25 for a period of two years following the closing of the placements.