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Electric Royalties to Acquire Further Royalty Interest on Producing Penouta Tin-Tantalum Mine in Spain
VANCOUVER, BC / ACCESSWIRE / July 27, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Electric Royalties to Acquire Further Royalty Interest on Producing Penouta Tin-Tantalum Mine in SpainVANCOUVER, BC / ACCESSWIRE / July 27, 2023 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") announces that it has exercised its option (the \"Option\") to increase its existing 0.75% Gross Revenue Royalty (\"GRR\") on the producing Penouta tin-tantalum mine in Spain (the \"Project\" or \"Penouta\"), operated by Strategic Minerals Europe Corp. (NEO: SNTA) (OTCQB: SNTAF) (\"Strategic Minerals\"), by a further 0.75% in exchange for a cash payment of C$1,250,000. Electric Royalties now holds an aggregated 1.5% GRR on Penouta.Upon receipt by the Company of C$1,666,667 in aggregate royalty revenues from the GRR, the royalty rate will be reduced to 1.25%. Upon receipt by the Company of C$3,333,334 in aggregate royalty revenues from the GRR, the royalty rate will be reduced to 1.0%. The Company acquired the Option as part of its acquisition of the original 0.75% GRR on Penouta in January 2023.Brendan Yurik, CEO of Electric Royalties, commented: \"We are pleased to increase our gross revenue royalty on the Penouta mine, the only currently-operating, primary source of tin in Europe. We are encouraged by the progress that Strategic Minerals has made improving operations at Penouta, steadily increasing primary concentrate production and sales. Gaining additional royalty exposure to a long-lived asset such as Penouta further strengthens the cash-generating portion of our royalty portfolio of clean energy metals.\"Penouta Tin-Tantalum Royalty HighlightsThe largest producer of tin and tantalum in the European Union1.Proven operations team with a track record of successfully building and operating mines.Penouta has been steadily increasing primary concentrate production since the start of 2022. In Q1 2023, Penouta produced 121 tonnes, or a 157% increase vs Q1 20222.Additional potential opportunity to add new revenue stream from high-grade feldspar from historical tailings.Long potential mine life based on total measured and indicated resources of 76.3 million tonnes3.For more information about the Penouta tin-tantalum mine and royalty acquisition terms, please see Electric Royalties' news release dated November 16, 2022.FinancingThe Company has drawn down C$1,400,000 under the C$5,000,000 convertibl...