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Gleason & Sons Funds Electric Royalties' Acquisition of 0.75% Gross Revenue Royalty on the Producing Punitaqui Copper Project
Gleason & Sons LLC announced today it has advanced C$3,050,000 under its previously announced acquisition facility to Electric Royalties Ltd. ("the Company") (TSXV:ELEC)(OTCQB:ELECF), positioning the Company to close, without shareholder dilution, on its investment in a 0.75% gross revenue royalty on the producing Punitaqui copper project in Chile operated by Battery Minerals Resources Corp. (TSXV:BMR)(OTCQB:BTRMF).
The Punitaqui royalty transaction is expected to close in the coming days upon receiving TSX Venture Exchange approval.
"We are encouraged by Electric Royalties' ability to put together sensible, win-win deals as it bulks up its diversified royalty portfolio to what will now be 41 royalties and 29 optioned properties across its nine target metals," said Stefan Gleason, managing director of Gleason & Sons. "The Company has kept its overhead costs low relative to its peers and continues to execute on its business plan despite the tough environment for small cap equities in the resource space."
"We see upside in the Company's royalty portfolio, including potential near-term catalysts at several of the underlying projects in which it holds royalties, i.e. Seymour Lake (lithium), Mont Sorcier (vanadium), Battery Hill (manganese), and Zonia (copper) which are each making plans to complete feasibility or pre-feasibility studies in the coming year.
"Electric Royalties is not cash flow positive, but we understand management hopes to reach that important milestone in 2025 thanks to this new producing copper royalty acquisition plus its existing option portfolio income, advanced royalty payments, and up to four other royalties in the Company's portfolio that could enter (or re-enter) production in 2025," concluded Gleason.
Gleason & Sons is the family office of Stefan Gleason, a Charlotte-based entrepreneur who owns several privately held businesses in the United States, including Money Metals Exchange LLC. Money Metals is one of the largest precious metals dealers and depositories in North America with 750,000 customers and over C$1 billion in annual revenues. Gleason and his affiliates also own approximately 29% of the common stock of the Company, and Mr. Gleason sits on the Company's board of directors.
Gleason & Sons specifically targets equity and debt investments in mining royalty companies. Historically lower risk than direct investments in miners and explorers, the royalty model appears ideally positioned for an inflationary environment. Metals prices tend to rise, yet the royalty holder is insulated from the downside of higher operating, exploration, and capital costs at the underlying mines as well as other risks.
Electric Royalties' non-dilutive debt facility provided by Gleason & Sons for the Company's royalty acquisitions carries a limit of C$10 million and an interest rate at SOFR plus 7%, with a maximum interest rate of 12.5%. All interest payments are deferred until maturity in January 2028. With the C$3,050,000 advance, the debt facility is now fully drawn. At Gleason & Sons' option, the loan principal is convertible into common shares of the Company at no less than C$0.50 per share and upon approval by the TSX Venture Exchange. Additional details about the debt facility can be found in Gleason & Sons' prior press release dated February 20, 2024.
For further information, contact:
Stefan Gleason
Gleason & Sons LLC
15720 Brixham Hill Avenue, #205
Charlotte, NC 28277
Tel: 208-577-2230
www.GleasonSons.com
This release includes certain statements that may be deemed "forward-looking statements" and "forward-looking information" under applicable securities laws. All statements in this release, other than statements of historical facts, that address anticipated future events are forward-looking statements, including the timing of the Company's closing of the Punitaqui royalty acquisition, completion of feasibility studies on underling projects in the near-term, the Company's achievement of positAive cash flow, and royalties entering or reentering production in 2025.
Although the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties and are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Such assumptions, risks and uncertainties include: the impact of general business and economic conditions; the absence of control over the mining operations from which the Company will receive royalties; risks related to international operations, government relations and environmental regulation; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of any the possibility that future exploration, development or mining results will not be consistent with management's expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; liability, competition, loss of key employees; and other related risks and uncertainties.
Gleason & Sons undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represent Gleason & Sons' best judgment based on information currently available. No forward-looking statement or information can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE: Gleason & Sons LLC
L.Durand--AMWN