- Electric Royalties (ELEC) is close to finalizing a deal to acquire a 0.75 percent Gross Revenue Royalty (GRR) in Spain
- The GRR relates to the Penouta tin-tantalum mine, owned by Strategic Minerals Europe Corp
- Electric Royalties is paying $1.25 million for the GRR in the cash-and-stock deal
- The company also has a 7-month option to acquire an additional 0.75 percent GRR for $1,250,000 in cash
- Electric Royalties is down 3.85 percent, trading at $0.25 at 11:49 am ET
Electric Royalties (ELEC) is close to finalizing a deal to acquire a 0.75 percent Gross Revenue Royalty (GRR) in Spain.
The GRR relates to the Penouta tin-tantalum mine, owned by Strategic Minerals Europe Corp.
The Vancouver-based advanced-stage royalty acquisition company is paying $1.25 million in the cash-and-stock deal.
The company also has a 7-month option to acquire an additional 0.75 percent GRR for $1,250,000 in cash.
The royalty rates will be reduced to 0.5 percent respectively once certain minimum royalty payments have been made.
“We are tremendously excited about adding this producing tin-tantalum royalty to our metals portfolio. The Penouta Mine is currently the largest tin and tantalum producer in all of Europe. The operations team at Strategic Minerals has a proven track record of building and operating mines. Penouta has been steadily increasing production since the start of 2022. The mine’s best quarter was in September, with production of 80 tonnes of primary concentrate of tin and tantalum. Our capital is expected to be well utilized for mine improvements, as well as allowing Strategic Minerals to potentially add additional revenue streams from Penouta,” said CEO Brendan Yurik.
“We’re delighted to partner with Strategic Minerals on this royalty financing and to get our first cash flow exposure to tin.”
The Penouta Mine is located in the northwestern Spanish province of Ourense. The project has been mined for centuries, with small underground workings following mineralized quartz veins within the leucogranite.
In the early 1900s, a small mining lease was granted, primarily for kaolin, followed by a number of other mining leases in the area.
The Penouta Mine was operated by a previous owner between 1976 and 1982, extracting cassiterite and tantalum mineralization by open pit methods.
Electric Royalties is down 3.85 percent, trading at $0.25 at 11:49 am ET.