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     109  0 Kommentare Electric Royalties Secures New, Highly Favourable Terms on Lithium Royalty and Option Portfolio, Signs Amended and Restated Letter of Intent

    VANCOUVER, BC / ACCESSWIRE / March 6, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce that, further to its November 6, 2023 news release, the Company has entered into an Amended …

    VANCOUVER, BC / ACCESSWIRE / March 6, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce that, further to its November 6, 2023 news release, the Company has entered into an Amended and Restated Letter of Intent with 1544230 Ontario Inc., MK Exploration Services Inc., and Gravel Ridge Resources Ltd. (together, the "Vendors"), dated March 5, 2024, to acquire a portfolio of 22 royalty agreements and 36 prospective lithium properties in Ontario, Canada (the "Transaction").

    Brendan Yurik, CEO of Electric Royalties, commented: "We are pleased to be able to work with the Vendors and agree on new, highly favourable acquisition terms given current lithium market conditions. We have successfully reduced the overall cash acquisition cost by approximately C$2,500,000 to C$1,975,000 to acquire 22 existing royalties, plus 36 lithium properties which have been optioned out to third parties. We anticipate that scheduled option payments from the properties will generate meaningful revenues to the Company over the next several years until partners have earned-in to each respective project, at which point each will convert to a new royalty in our portfolio.

    "Lithium is still a very new market and while it may be seemingly oversupplied in the short term, new sources will need to be developed to meet long-term demand from the growing number of electric vehicle and battery plants across the U.S., as well as the renewable energy and the emerging energy storage markets. This revised Transaction comes at an opportune time to significantly expand exposure to lithium in Ontario at a relatively low cost. A top-tier mining jurisdiction, Ontario has the potential to be a major supplier of lithium: the permitting environment is favourable especially for battery metal projects, and mineralization is commonly close to surface - increasing the odds of new discoveries progressing along the development curve.

    "Upon closing of this Transaction, Electric Royalties will have a significant portfolio of 44 royalties with a clear path to growth towards 80 royalties without further acquisition costs. The Company is becoming increasingly well positioned as the clean energy revolution globally continues to gather pace."

    Amended Transaction Terms

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    The Company will issue to the Vendors an aggregate of 2,250,000 common shares in the capital of the Company (the "Consideration Shares"), make a cash payment (the sum of C$1,975,000 less the (i) C$75,000 non-refundable exclusivity fee already paid; (ii) the amount of certain payments received by the Vendors under certain earn-in, option, royalty, or similar agreements on or after January 1, 2024; and (iii) 50% of any proceeds received by the Vendors for the sale of certain purchased interests) on closing of the Transaction ("Closing").

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    Electric Royalties Secures New, Highly Favourable Terms on Lithium Royalty and Option Portfolio, Signs Amended and Restated Letter of Intent VANCOUVER, BC / ACCESSWIRE / March 6, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce that, further to its November 6, 2023 news release, the Company has entered into an Amended …