Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) is guiding 20 mining companies toward producing a range of metals used in the electrification of consumer products.
One of those commodities is lithium, used in everything from electric vehicles to rechargeable batteries, large-scale energy storage, renewable energy generation and other applications.
Brendan Yurik, CEO of Electric Royalties, said the company is seeing rapid progress across its lithium royalty interests in eastern Canada.
READ: Electric Royalties reveals positive PEA results for the Mont Sorcier project in Quebec
“We are confident that our commitment to clean energy metal royalties remains a solid business proposition. As an example, Sayona Mining is steadily advancing its North American Lithium (NAL) operation and the planned integration of the Authier project. NAL is projected to be the only producing lithium mine in Canada by early next year, and will potentially be a steady and long-life cash flow generator for Electric Royalties at such time as it commences production,” Yurik said in a statement.
All the company’s lithium royalties to date are on hard rock lithium spodumene deposits in eastern Canada and were acquired when lithium spodumene prices were under $500 per tonne. According to the company, recent prices have reached over $7,500 per tonne, representing an increase of 1,400%.
“As a royalty company, our expected revenue from royalties is directly proportional to metal prices. We're looking forward to production at Authier, potentially in 2023, along with the expected economic study for Seymour Lake and an initial resource estimate at Cancet. The advancement of the Mont Sorcier vanadium royalty towards feasibility stage and Battery Hill towards pre-feasibility during the next 12 months are also exciting milestones that we are anticipating at Electric Royalties," Yurik said.
The company has provided an update on six of its royalty mining projects.
Authier
Electric Royalties said it has a 0.5% gross metal royalty in the Authier lithium project by Sayona Mining, which has advanced its planned restart of spodumene (lithium) production at the North American Lithium (NAL) operation in Quebec. Permitting applications are 95% complete and procurement is at 94%, with most major procurement items already on-site. Construction activities have also ramped up, with the installation of cone crushers underway, among other items, according to Electric.
At the end of September, Sayona awarded Quebec company L Fournier & Fils an approximately C$200 million contract to supervise stripping and drilling, blasting, loading and transportation of ore and waste rock, maintenance of mining roads, and all other services related to operations at NAL. The contract is expected to generate 120 new jobs, according to Electric.
Sayona plans to combine mineralized material produced from Authier with mineralized material at the nearby NAL site, with a goal to boost improvement in plant performance and economics. The FPS is looking to integrate the NAL operation into Sayona's Abitibi lithium hub, according to Electric Royalties.
Cancet
Electric Royalties said it holds a 1% net smelter royalty in the Cancet lithium project by Winsome Resources, which announced at the end of September that it has completed stage 1 environmental studies of the project in Quebec.
Completion of environmental studies marks a step toward ongoing exploration activity and mining approval process. The survey and fieldwork carried out by First Nations-led consultancy Niigaan helps to inform an environmental map database covering the Cancet property. Winsome expects the full environmental dataset to be completed in 2023, according to Electric.
According to Winsome, one of the approximately 15 pegmatite outcrops identified during previous field exploration work will be targeted in drilling to begin in October.
Battery Hill
Electric Royalties said it holds a 2% gross metal royalty in the Battery Hill manganese project undertaken by the Manganese X Energy Corp (TSX-V:MN, OTCQB:MNXXF). This company said it has filed a provisional patent on the manganese purification process in preparation for its upcoming pilot project at the Battery Hill manganese project in New Brunswick.
Tendering for the proposed drilling program is tentatively scheduled for late October.
Geotechnical and hydrogeological drilling is planned for early 2023 for open-pit mine design and to advance the understanding of ground conditions in proposed infrastructure sites. Additional environmental baseline data will continue to be collected through 2022 and 2023, according to Electric Royalties.
Mont Sorcier
Electric Royalties said it holds a 1% gross metal royalty in the Mont Sorcier iron and vanadium project by Voyager Metals Inc (TSX-V:VONE, OTC:VDMRF). That company has retained DRA Americas Inc to act as project integrator for the NI 43-101 feasibility study of the Mont Sorcier iron and vanadium project located near Chibougamau, Quebec.
Seymour Lake
Electric Royalties said it holds a 1.4% net smelter royalty on the Seymour Lake lithium project by Green Technology Metals Limited in Ontario.
The drilling focus at Seymour Lake is testing for lateral repeats of the North Aubry deposit to the north and drilling the multiple mapped pegmatite targets across the Pye Complex.
Chubb
Electric Royalties said it holds a 2% gross metal royalty in the Chubb lithium project done by the Newfoundland Discovery Corp, which recently granted Australian company Mining Equities Pty Ltd a 100% interest in the Chubb property, which consists of 35 mineral claims in Quebec.
Newfoundland Discovery has granted Mining Equities an exclusive due diligence period of 45 days in consideration of a non-refundable payment of C$10,000, according to Electric Royalties.
Electric Royalties is a royalty company established to take advantage of the demand for lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper used in electrification of consumer products. It has 20 royalties in its portfolio, including one that is generating revenue.
Contact the author at susie@proactiveinvestors.com