Electric Royalties Ltd. doubles its credit facility with Gleason & Sons LLC

Electric Royalties Ltd., a Vancouver-based company, announced that it has signed an amended and restated agreement with Gleason & Sons LLC, increasing its existing convertible credit facility from 5 million CAD to 10 million CAD. This transaction, following previous announcements in 2023, is subject to certain conditions outlined in the agreement. The new agreement extends the maturity date until January 12, 2028.

Interest will accrue at the lower of the secured overnight financing rate plus 7% and 12.5% per annum. Interest is calculated on a daily basis and compounded annually. The company may prepay all or part of the debt without any prepayment fees with a 15-day notice.

The lender, under certain conditions, may convert the outstanding principal and interest into ordinary shares of the company. The security for the credit facility includes a portion of Electric Royalties' royalty portfolio, which covers various international mining projects.

This agreement constitutes a "related party transaction," with Electric Royalties seeking shareholder approval in March 2024. Until such approval, draws are limited to 5 million CAD, with 4.45 million CAD already advanced.

Electric Royalties is positioning itself to capitalize on the increasing demand for minerals essential to electrification, through strategic diversification of its royalty portfolio in projects with low geopolitical risk.