ELEC to acquire a 0.5% Gross Revenue Royalty (GRR) ! Electric Royalties Ltd./TSXV: ELEC: ELEC to acquire a 0.5% Gross Revenue Royalty (GRR) on the Kenbridge nickel project in Ontario
Analyst Opinion: ELEC is acquiring a 0.5% GRR on Tartisan’s Kenbridge nickel project for $1.35M (cash + shares). A 2022 PEA on this project had returned attractive economics, with an AT-NPV5% of $109M, and a high AT-IRR of 20%, using US$10/lb nickel.
We believe the project can be advanced to production in four years.
Our fair value estimate of this deal is $1.44M (per our last report on TN in July 2022), implying that the proposed transaction terms are in line with our estimates. We believe this non-dilutive financing should highly benefit TN.
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