Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) said it has completed a previously announced graphite royalty portfolio acquisition with Vox Royalty (TSX-V:VOX) Corp and its wholly-owned subsidiaries, SilverStream SEZC and Vox Royalty (TSX-V:VOX) Australia Pty Ltd.
Under the Royalty Purchase Agreement, Electric Royalties will issue an aggregate of 7,270,408 common shares to Vox at a deemed price of $0.392 per share.
The value was calculated on the 10-day volume-weighted average price of the shares on the TSX Venture Exchange prior to the date of transaction.
READ: Electric Royalties completes C$2M private placement; updates royalty acquisition on Middle Tennessee mine
Focused on metals and minerals that will be crucial for the global electrification, Electric Royalties will gain exposure to graphite through near-term production at the Graphmada project in Madagascar, as well as a high-grade graphite deposit with exploration upside at the Yalbra project in Western Australia.
Electric Royalties went on the highlight the additional benefits associated with acquiring the Vox royalties:
- Exposure to near-term graphite production at the Graphmada Project, Madagascar;
- Existing process plant capable of producing 6,000 tonnes per annum of large flake graphite concentrate;
- Operated for 20 continuous months during 2018 and 2019 producing concentrates comprised of more than 43% large to jumbo flake graphite, currently on temporary care and maintenance pending stage 2 expansion); and
- Currently the subject of a drilling campaign and mining studies to increase future mine production through organic growth and plant upgrades; and
- Exposure to a high-grade graphite deposit with exploration upside at the Yalbra Project, Western Australia.
"We are excited to have completed the Vox Royalty (TSX-V:VOX) portfolio acquisition while at the same time strengthening our corporate relationship with Vox. Acquisition of the Graphmada and Yalbra royalties provides the company with additional exposure to graphite and the potential for near term cash flow,” Brendan Yurik, CEO of Electric Royalties said in the statement.
Additionally, Vox was described as a high-growth precious metals royalty and streaming company with a portfolio of over 50 royalties and streams spanning eight jurisdictions, as well as a proprietary database of over 8,000 royalties.
“Vox has an exciting young team and proprietary data on existing royalties within the clean energy metals space. This is the first transaction we've worked on with Vox and management is excited about the opportunity to partner with them over the longer term," Yurik added.
Contact the writer at georgia@proactiveinvestors.com
Follow her on Twitter @MissInformd