- Electric Royalties Ltd. (TSXV:ELEC) has signed letter of intent to acquire a portfolio of 126 lithium properties in Eastern Canada
- The combined area totals more than 4,046 square kilometres of highly prospective lithium parcels
- The company anticipates that the portfolio of properties will yield option payments of approximately C$1.4 million in 2024, C$2 million in 2025, and C$2.7 million in 2026, for a total of approximately C$6 million over the next three years
- Electric Royalties Ltd. last traded at $0.21 per share
Electric Royalties Ltd. (TSXV:ELEC) has signed letter of intent to acquire a portfolio of 126 lithium properties in Eastern Canada.
The Vancouver-based company signed the letter of intent with Perry English, Michael Kilbourne, 1544230 Ontario Inc., and Gravel Ridge Resources Ltd. The combined area totals more than 4,046 square kilometres of highly prospective lithium areas.
Of the 126 properties, most are in the province of Ontario. One hundred and one properties are being explored by third parties and have the potential to result in royalties payable to Electric Royalties by the optionee of the applicable properties. The company expects this will generate near-term cash flow while maintaining long-term upside via royalties on those assets.
The company anticipates that the portfolio of properties will yield option payments of approximately C$1.4 million in 2024, C$2 million in 2025 and C$2.7 million in 2026, for a total of approximately C$6 million over the next three years.
“This acquisition covers lithium properties in Eastern Canada and could not come at a better time – the U.S. is experiencing an electric vehicle (EV) battery boom, with a record US$82 billion of investment announced to build 96 EV, electric battery, and battery recycling plants across the country,” Brendan Yurik, CEO of Electric Royalties, said in a news release. “The lithium properties of Eastern Canada are strategically located in close proximity to the U.S. battery belt that stretches from the northeast to the southeast of the country. Canadian-sourced lithium is expected to play an important role in the EV battery supply chain, especially since the U.S. Inflation Reduction Act incentivizes lithium sourced from Canada.”
Electric Royalties is focused on a range of commodities, including lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper. The company has a growing portfolio of 22 royalties and predominantly works to acquire royalties on advanced-stage and operating projects to build a diversified portfolio.
Electric Royalties Ltd. last traded at $0.21 per share.
Join the discussion: Find out what everybody’s saying about this stock on the Electric Royalties Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.