Electric Royalties Ltd (CVE:ELEC) (OTCMKTS:ELECF) said it has closed a previously announced private placement consisting of 5 million units of the company for gross proceeds of C$2 million.
The battery and electric vehicle metals royalty company has a portfolio of a dozen royalties and is in the process of acquiring four more.
The private offering was originally launched in early May and updated a few weeks later.
READ: Electric Royalties renegotiates its LOI with Sprott Streaming for the Globex Mining MTM royalty acquisition
Each unit of the private placement comprises one common share, as well as one common share purchase warrant. The warrants are exercisable for up to two years following the closing date, at a price of $0.60 per warrant.
According to the company, cash fees of $67,200 were also paid. In addition, Electric Royalties issued brokers' warrants entitling the holders to acquire up to an aggregate of 93,000 shares of Electric Royalties at a price of $0.60 per share for a period of 12 months from closing.
"We appreciate the participation of existing shareholders in this financing and are excited to welcome new investors to our growing shareholder base. With this financing Electric Royalties is now positioned to immediately pursue additional new royalty acquisitions,” CEO Brendan Yurik said in a statement.
Yurik went on to say: “In parallel, with the successful renegotiation of the $17.5 million co-investment package announced May 26, Electric Royalties is working towards closing of its first cash flowing royalty on the Middle Tennessee mine located in the United States and will look to provide an update on the transaction in the coming weeks."
The private placement will be subject to applicable resale restrictions, including a four-month hold period from the date of closing under applicable Canadian securities laws. The completion of the private placement is also subject to regulatory approvals from the TSX Venture Exchange.
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