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Electric Royalties Announces Commitment Letter To Increase Convertible Credit Facility to C$10 Million on Improved Terms, Takes Drawdown
VANCOUVER, BC / ACCESSWIRE / October 19, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF)...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Electric Royalties Announces Commitment Letter To Increase Convertible Credit Facility to C$10 Million on Improved Terms, Takes DrawdownVANCOUVER, BC / ACCESSWIRE / October 19, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") is pleased to announce, further to its April 20, 2023, January 19, 2023 and November 16, 2022 news releases, that it has signed a commitment letter with Gleason & Sons LLC (the \"Lender\") to increase the Company's existing convertible credit facility from C$5,000,000 to C$10,000,000 (the \"Loan Amendment\"). Gleason & Sons LLC is controlled by Stefan Gleason, a significant shareholder and Board Observer of Electric Royalties.The credit facility will be secured by: (i) a portion of the Company's existing royalty portfolio (1.5% Gross Revenue Royalty on the Penouta Mine in Spain, 0.5% Gross Revenue Royalty on the Kenbridge nickel project in Canada, the sliding scale Gross Metals Royalty on the Middle Tennessee Mine in the United States, 0.5% Gross Metal Royalty on the Authier lithium project in Canada and 1.5% Gross Revenue Royalty on the Bissett Creek graphite project in Canada); and (ii) a lien against the Company's present and future rights in additional royalties acquired using funds advanced under the credit facility, if any.The Lender has also agreed to extend the Maturity Date of the loan from January 12, 2026 to January 12, 2028. All other terms of the credit facility remain the same.Meanwhile, the Company has elected to draw down C$500,000 under the convertible credit facility (the \"Drawdown\") for working capital.Brendan Yurik, CEO of Electric Royalties, commented: \"We once again thank our largest shareholder Stefan for his ongoing and long-term support of Electric Royalties. The additional $5 million in credit that he is providing, with a favorable term and rate, speaks to his belief in the mandate of the Company, which is to grow shareholder value by enabling the development of metal assets the world critically needs to achieve electrification and transition away from fossil fuels. Access to this credit facility means that Electric Royalties is able to continue pursuing its near-term goal of becoming cashflow positive through the acquisition of additional producing royalties, without diluting shareholders at current share prices.\"Stefa...