Electric Royalties to Sell Two Thirds of Its 1.5% Net Smelter Royalty on the Seymour Lake Lithium Deposit for C$4,000,000 Cash

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[{"type":"text","content":"Electric Royalties to Sell Two Thirds of Its 1.5% Net Smelter Royalty on the Seymour Lake Lithium Deposit for C$4,000,000 CashVANCOUVER, BC / ACCESSWIRE / June 28, 2022 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") is pleased to announce the signing of an agreement on June 27, 2022 to sell 1% of its existing 1.5% Net Smelter Royalty (\"NSR\") on the Seymour Lake Lithium Deposit in Ontario, Canada, to Lithium Royalty Corp. (\"LRC\"). For more information on the Seymour Lake Lithium Deposit, see Electric Royalties' news release on February 17, 2021.Brendan Yurik, CEO of Electric Royalties, commented: \"The sale of part of our Seymour Lake royalty will unlock some of the value in our portfolio. The Company acquired the 1.5% NSR in 2021 for 3,000,000 shares, prior to the substantial increase of the lithium price this past year1. This partial sale along with the cash from our recent financing will enable us to deploy capital into additional nearer-term production opportunities with a view to increasing cash flow. We believe our current valuation does not reflect the value of our royalty portfolio of 19 royalties acquired to date, with potential for promising cash flow over the next few years.\"Acquisition TermsThe Company will receive $4,000,000 cash consideration for selling two thirds of its 1.5% NSR (\"NSR Interest\"), being one-half of an aggregate 3.0% NSR (\"Project NSR\"), acquired from an arm's-length holder who originally acquired the NSR Interest, with the balance of the Project NSR held by Sandstorm Gold Ltd. Upon closing of the transaction, Electric Royalties will retain a 0.5% NSR on Seymour Lake.Closing is expected around mid August 2022, and is subject to completion of due diligence and certain customary conditions.About Electric Royalties Ltd.Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several...

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