Transaction Highlights
- The MTM royalty is the Company's first cash-flowing royalty, and results in
Electric Royalties becoming the only cash-flowing royalty company solely focused on the battery metals sector. - The MTM royalty has generated royalties of
~C$4,700,000 since production re-started in Q2 2017 (source: https://globexmining.com/globex-zinc-royalty.htm ). - MTM has a first class owner and operator in Trafigura (
US$147 billion revenue in 2020, source: https://www.trafigura.com/trafigura-in-brief/). - The
Glassville royalty is strategically located near to the Company's existing Battery Hill manganese royalty inNew Brunswick, Canada .
MTM Royalty
The MTM royalty is a sliding scale gross metals royalty, with no royalty payable if the zinc price is below
The Mid Tennessee Zinc Mines have been in intermittent operation for over 50 years and have produced over 2.7 billion pounds of zinc (https://www.northernminer.com/news/sra-revives-mid-tennessee-zinc-complex/1000220368/ ). Three underground mines make up the complex including
More information on MTM can be found at https://www.nyrstar.com/cdn/88ae9585-d1d6-4df7-93b0-b0bb6aad9af9/2020-fact-sheet-middle-tennesee-30dec.pdf
Transaction Financing and Closing
Within 10 business days of signature of the Agreement, the Company will make a non-refundable down payment of
About
Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to feed the electric revolution.
Neither the
Cautionary Statements Regarding Forward-Looking Information and Other Company Information
This news release includes information regarding other companies based on previously disclosed pubic information disclosed by those companies and the Company is not responsibility for the accuracy of that information, and that all information provided herein is subject to this FLI cautionary. This news release also includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and these other companies and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results or those of these other companies and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities or those of these other companies.
While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or these other companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the mining industry generally, the Covid-19 pandemic, recent market volatility, income tax and regulatory matters; the ability of the Company or any of these other companies to implement its business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings on SEDAR and those of these other companies, or equivalent public filings for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.
SOURCE
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