Electric Royalties Ltd (CVE:ELEC) (OCTMKTS:ELECF) has entered into a letter of intent (LOI) with Sprott Resource Streaming and Royalty to help fund the acquisition of the Middle Tennessee Mine (MTM) royalty.
Under the proposed terms, Electric Royalties said Sprott Streaming would pay C$9.15 million in cash in return for 50% of the MTM royalty with Electric Royalties retaining 50% of the MTM royalty.
- Proposed co-investment represents 70% of the MTM royalty acquisition cash consideration;
- Establishes a relationship with the Sprott group, a globally recognized financial partner in the resources industry; and
- The proposed transaction is subject to completion of due diligence and other customary matters.
“We are excited to partner with Sprott on our first cash flowing royalty acquisition and look forward to working with them on many more deals in the future,” said Brendan Yurik, CEO of Electric Royalties. “Sprott Royalty and Streaming has an outstanding team and track record.”
As per the agreement with Globex Mining Enterprises Inc (TSE:GMX) (OTCMKTS:GLBXF) (FRA:G1MN) last month, Electric Royalties said it will need to complete a minimum C$10 million financing to close the MTM royalty acquisition.
The company added that it is in discussions with several parties regarding equity financing, and will disclose additional information in due course.
Electric Royalties is a royalty company established so investors can participate in the demand for commodities, such as lithium, vanadium, manganese, tin, graphite, cobalt, nickel and copper, which will benefit from the global drive towards electrification of a variety of consumer products, including cars, rechargeable batteries, large scale energy storage, and renewable energy generation.
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Story by ProactiveInvestors
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