Electric Royalties Ltd. (TSXV:ELEC) (OTCQB: ELECF) is seeing rapid progress across its royalty portfolio, particularly its lithium royalty interests in eastern Canada.
Electric Royalties is a cash-generating royalty company with a growing portfolio of 20 royalties offering exposure to metals crucial for the electrification of the world’s auto fleet and energy generation – lithium, copper, cobalt, manganese, tin, zinc, graphite, vanadium and nickel. Lithium is a top commodity, used in everything from electric vehicles to rechargeable batteries, as well as large-scale energy storage and renewable energy generation.
Electric Royalties’ CEO Brendan Yurik commented on the quick pace of development that the company is seeing across many of its royalty interests.
“Sayona Mining is steadily advancing a renewal of its North American Lithium (NAL) operation and the planned integration of the Authier lithium project in which we hold a royalty interest. NAL is projected to be the only producing lithium mine in Canada by early next year and at such time, production at Authier commences has the potential to be a steady and long-life cashflow generator for Electric Royalties. All of our lithium royalties to date are on hard rock lithium deposits in Eastern Canada, acquired when lithium spodumene prices were less than $500 per tonne. Recently, lithium prices have reached over $7,500 per tonne, representing an increase of 1,400 per cent, which is great news because, as a royalty company, our expected revenue from royalties is directly proportional to metal prices. We’re looking forward to production at Authier, potentially in 2023, and expect project operators to receive an economic study for the Seymour Lake project and an initial resource estimate for the Cancet project.
“The advancements of the Mont Sorcier vanadium royalty towards the feasibility stage and the Battery Hill manganese project towards pre-feasibility are also exciting milestones that we are anticipating during the next 12 months.”
In October 2022, the company provided an update on six of its royalty mining projects.
Authier Lithium Project:
Electric Royalties has a 0.5 per cent gross metal royalty on the Authier lithium project owned by Sayona Mining Ltd. (ASX:SYA). Sayona has advanced its planned restart of spodumene (lithium) production at the North American Lithium (NAL) operation in Quebec.
Permitting applications are 95 per cent complete, and procurement is at 94 per cent, with most major procurement items already on-site. Construction activities have also ramped up, with the installation of cone crushers, among other items, underway, according to Electric Royalties.
In September, Sayona awarded Quebec company L. Fournier & Fils, a C$200 million contract to supervise stripping and drilling, blasting, loading, and transportation of ore and waste rock, maintenance of mining roads, and all other services related to operations at NAL.
Sayona intends to combine mineralized material produced from Authier with mineralized material at the nearby NAL site to boost plant performance and economics at its Abitibi lithium hub.
Cancet Lithium Project:
Electric Royalties holds a 1 per cent net smelter royalty on the Cancet lithium project by Winsome Resources (ASX:WR1), where Winsome had completed stage 1 environmental studies of the Quebec project, marking a step towards the mining approval process while concurrently advancing onsite exploration with one of the pegmatite outcrops found during previous field exploration being targeted by drilling to begin in October. According to Electric Royalties, Winsome expects the full environmental dataset to be completed in 2023.
Battery Hill Manganese Project:
Electric Royalties holds a 2 per cent gross metal royalty on the Battery Hill manganese project in New Brunswick, controlled by the Manganese X Energy Corp (TSXV:MN), which has filed a provisional patent on the manganese purification process that it plans to use. This was done in preparation for an upcoming pilot project, with the goal of demonstrating the efficiency of the proprietary process to treat Battery Hill mineralization under near commercial-scale operating conditions.
Additionally, tendering for a proposed drilling program is tentatively scheduled for late October. Geotechnical and hydrogeological drilling is planned for early 2023 to collect data for open-pit mine design and to advance the understanding of ground conditions in proposed infrastructure sites.
Mont Sorcier Iron and Vanadium Project:
With a 1 per cent gross metal royalty on this project operated by Voyager Metals Inc. (TSXV:VONE), Electric Royalties reported that DRA Americas Inc. has been retained to act as a project integrator for the feasibility study of the Mont Sorcier iron and vanadium project situated near Chibougamau, Quebec.
Seymour Lake Lithium Project:
Electric Royalties holds a 1.5 per cent net smelter royalty on the Seymour Lake lithium project in Ontario, owned by Green Technology Metals Limited (ASX:GT1).
The drilling focus at Seymour Lake is to test for lateral repeats of the North Aubry deposit to the north and the multiple pegmatite targets mapped across the Pye Complex.
Chubb Lithium Project:
Project operator Newfoundland Discovery Corp. (CSE:NEWD) recently entered into a binding letter of intent where it has granted Australian company Mining Equities Pty Ltd. the right to acquire a 100 per cent interest in the Chubb property located in Québec.
Electric Royalties holds a 2 per cent gross metal royalty on the Chubb lithium project.
Well-positioned to capitalize on the demand for lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc, and copper used in the electrification of consumer and industrial products, Electric Royalties Ltd. delivered an impressive update on the royalties in its portfolio. Investors would be wise to stay tuned for future updates from Electric Royalties. For more information, visit electricroyalties.com.
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