(NewsDirect)
Electric Royalties CEO Brendan Yurikjoined Steve Darling from Proactive to share details regarding thecompany's Letter of Intent to acquire a portfolio of lithiumproperties.
The portfolio comprises126 lithium properties covering over 1,000,000 acres of highlyprospective lithium prospects in Eastern Canada. This region islocated close to the U.S. battery belt, making it a key area forproducing clean energy metals.
Yurik explained that 101 of the 126 properties have beenoptioned to various companies under a royalty prospect-generationmodel. Under this model, exploration companies make cash payments tothe royalty prospector, generating near-term cash flow while retaininglong-term upside through royalties on those assets.
Electric Royalties expects the portfolioof properties to yield option payments of approximately $1.4 millionin 2024, $2 million in 2025, and $2.7 million in 2026, totalingapproximately C$6 million over the next three years, subject to theoptioned properties remaining optioned.
This strategic movepositions Electric Royalties to benefit from the growing demand forlithium in the clean energy sector, particularly in the eastern regionof Canada, which is poised to become a center for clean energy metalsproduction in the coming decades.
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