Electric Royalties Ltd. Expands Portfolio with Lithium Royalty Acquisition

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) has officially entered into an Asset Purchase Agreement to acquire a significant portfolio of 18 royalty agreements and 32 lithium properties in Ontario, Canada. This strategic move, announced on April 9, 2024, follows the company's amended and restated letter of intent detailed in their previous March 6, 2024, news release. The properties, chosen for their high prospectivity after thorough due diligence, mark a substantial expansion for Electric Royalties.

The terms of the Transaction include the issuance of 2,250,000 common shares to the Vendors and a cash payment, with the total cash consideration being adjusted for previous payments and certain proceeds received by the Vendors. This deal is expected to close in April 2024, subject to various conditions including TSX Venture Exchange approval and satisfactory completion of due diligence.

Additionally, Electric Royalties has drawn C$2,500,000 under its convertible credit facility with Gleason & Sons LLC to fund the Transaction and associated costs. This drawdown, bearing interest at a floating rate with a maximum of 12.5%, is convertible into common shares of the company under specific conditions.

Upon completion, this acquisition will significantly bolster Electric Royalties' portfolio with a total of 40 royalties worldwide and expand its footprint in the lithium sector—a critical component of the electric revolution. These developments illustrate Electric Royalties' aggressive strategy to capitalize on the increasing demand for lithium and other commodities vital for electrification and the global shift towards more sustainable energy sources.