Electric Royalties Acquires Royalty on Punitaqui Copper Mine

Electric Royalties Ltd. has completed the acquisition of a 0.75% gross revenue royalty on the Punitaqui copper mine in Chile. This marks the company's first cash-flowing copper royalty, providing a steady revenue stream. The royalty applies to mining claims and third-party materials processed through the mining complex until December 31, 2027. A definitive agreement with Minera BMR SpA involves an initial payment of C$3,050,000 and a further C$450,000 within 45 days.

The acquisition is financed through a C$3,050,000 drawdown under an amended convertible credit facility with Gleason & Sons LLC. Loans bear interest at SOFR + 7%, capped at 12.5%. The facility allows for conversion into common shares, with a current conversion price set at C$0.50. As such, 6,100,000 common shares are issuable.

The acquisition fits Electric Royalties' strategy to diversify into clean energy metals. The company maintains a broad portfolio of royalty interests in materials essential for electrification.