Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) has announced a significant expansion of its assets through the acquisition of 18 royalty agreements and 32 lithium properties in Ontario, Canada. This strategic move stems from an Asset Purchase Agreement with 1544230 Ontario Inc., MK Exploration Services Inc., and Gravel Ridge Resources Ltd., enhancing the company’s footprint in the lithium market.

Acquisition Details

Following thorough due diligence, Electric Royalties identifies these properties as highly promising. The agreement includes 31 of the 32 properties currently explored under option agreements, potentially adding up to C$2.2 million to the company’s revenue over the next two and a half years, should the options be exercised.

Transaction Terms

For this acquisition, Electric Royalties will issue 2,250,000 common shares and make a cash payment to the Vendors, keeping the financial growth in sight. The completion of this transaction, expected within April 2024, hinges on several conditions, including due diligence and TSX Venture Exchange approval.

Funding the Acquisition

A C$2,500,000 Drawdown under its convertible credit facility with Gleason & Sons LLC aims to provide the necessary capital for this transaction, subject to TSX Venture Exchange approbation.

About Electric Royalties Ltd.

As a noteworthy player in the electrification of consumer products, Electric Royalties stands at the forefront of the electric revolution. With this transaction, the company’s portfolio grows even further, marking a significant advance in its strategy to invest in commodities pivotal for a decarbonized global economy.

Disclaimer:
The content presented on this page has not been manually verified by our team. While we strive to ensure accuracy, we cannot guarantee the validity, completeness, or timeliness of the information provided. Always consult with appropriate professionals or sources before making any decisions based on this content.

Click here for more Company News