Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has announced the closing of its previously announced acquisition of a 1% net smelter revenue royalty on the Rana nickel project in Norway.
As reported in December last year, the transaction was struck with Global Energy Metals Corp (TSX-V:GEMC) (GEMC) and its partner Scandinavian Resource Holdings (SRH).
Electric said it had now issued 1.8 million shares of the company to Casper Peterson, Jeroen Van Gool, Martin Blakeman and Winton Willesee (as nominees for SRH) and made a cash payment of $90,000 to SRH, issued 200,000 consideration shares to GEMC and made a cash payment of $10,000 to GEMC.
The consideration shares are subject to a voluntary escrow lock-up agreement which says that 50% of the common shares will be subject to a hold period of four months and one day, 25% for 8 months and the remaining 25% for 12 months.
READ: Global Energy Metals and Electric Royalties strike deal to advance the development of the Rana nickel project in Norway
Electric Royalties has a growing portfolio of 18 royalties, including one royalty that currently generates revenue. It was established to take advantage of the demand for a wide range of commodities, which will benefit from the drive toward electrification.
The 1% NSR covers four exploration licenses totaling 25 square kilometres (sq km) at the Råna mafic-ultramafic intrusion in northern Norway, which includes the past producing Bruvann nickel mine.
"Under-explored, historically producing nickel mines like Rana in tier 1 jurisdictions are an excellent place to search for future nickel supply to fill the looming supply-demand gap in an ESG friendly way and with less risk than greenfield projects,” Electric Royalties CEO Brendan Yurik had said in a statement last month.
Contact the writer at giles@proactiveinvestors.com