Electric Royalties Signs Letter of Intent To Acquire Portfolio of 126 Lithium Properties in Eastern Canada

About this update from Electric Royalties Ltd.

[{"type":"text","content":"Electric Royalties Signs Letter of Intent To Acquire Portfolio of 126 Lithium Properties in Eastern CanadaVANCOUVER, BC / ACCESSWIRE / November 6, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") is pleased to announce that the Company has entered into a Letter of Intent with Perry English, Michael Kilbourne, 1544230 Ontario Inc. and Gravel Ridge Resources Ltd. (together, the \"Vendors\"), dated November 3, 2023, to acquire a portfolio of 126 lithium properties in Eastern Canada (the \"Transaction\").Brendan Yurik, CEO of Electric Royalties, commented: \"This proposed acquisition comprises a land package of 126 properties totalling over 1,000,000 acres of highly-prospective lithium prospects in Eastern Canada - a region that could be the center of clean energy metals production for decades to come. Of these 126 properties, 101 have been optioned to various companies under a royalty prospect-generation model, whereby exploration companies make cash payments to the royalty prospector. This generates near-term cash flow while maintaining long-term upside via royalties on those assets.\"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 country1. 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 country2. 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.\"We anticipate that this acquisition will bolster our cash generation over the next three years, as 101 properties are under option agreements with third parties with option payments of approximately C$6 million scheduled over that period. Thanks to the recently announced enlarged credit facility commitment from Gleason & Sons LLC, the family office of our largest shareholder Stefan Gleason, Electric Royalties is well positioned to seize the potential opportunity to significantly grow the size of our royalty portfolio.\"Overview of Lithium Port...

More updates from Electric Royalties Ltd.