Gleason & Sons Commits to Providing Electric Royalties with $10 Million Convertible Credit Facility for Acquiring Cash-Flowing Royalties

Gleason & Sons Commits to Providing Electric Royalties with $10 Million Convertible Credit Facility for Acquiring Cash-Flowing Royalties

Gleason & Sons LLC announced today it has committed to provide an expanded C$10 million convertible loan (the "Credit Facility") for Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (the "Company") to enable the Company to capitalize on new opportunities to acquire undervalued royalties

With its maturity date to be extended two additional years to 2028, the amended Credit Facility will provide Electric Royalties with a long-term, non-dilutive source of capital to bridge the Company to positive cash flow in the near term while also providing additional financial resources to add to its existing portfolio of 22 royalty assets across nine critical metals used in the electrification of the global economy.

In addition to funding producing royalty acquisitions, the Credit Facility could also be, upon lender approval, advanced for working capital or for Company purchases of its undervalued shares on the open market pursuant to a Normal Course Issuer Bid (NCIB) filing.

Gleason & Sons is the family office of Stefan Gleason, a Charlotte-based entrepreneur who leads 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 over C$1 billion in annual revenues.

Gleason and his affiliates are also major shareholders in Electric Royalties with a 19.99% ownership stake, in the aggregate.

"We are pleased to help Electric Royalties capitalize on today's fertile environment to acquire undervalued royalties connected with accretive battery metals projects in North America and other top-tier jurisdictions," said Stefan Gleason, managing director of Gleason & Sons.

"Electric Royalties already owns three royalties that provide revenue. And because the Company has wisely kept its overhead costs low, it is expected to reach positive cash flow in the near term - whether it be a result of closing on another producing asset from its robust deal pipeline or when another of its 22 existing royalties enters production as expected," Gleason continued.

"We applaud CEO Brendan Yurik and the Company's board for continuing to execute on their business plan without resorting to dilutive equity financings at a time when the valuation of Electric Royalties' shares on the public markets, according to independent analysis by Fundamental Research Corp., are so dramatically below their fair value."

Electric Royalties also advanced C$500,000 from the Credit Facility this week for general working capital purposes and certain due-diligence costs relating to prospective transactions. The agreed interest rate, right to accrue interest until the extended 2028 maturity date, fees, convertibility price, and other loan terms are highly favorable to the Company and its shareholders.

The loan commitment is subject to the parties entering into an Amended and Restated Loan Agreement reflecting the modified terms and the approval of the TSX Venture Exchange.

For further information, contact:

Stefan Gleason
Managing Director
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." All statements in this release, other than statements of historical facts, that address anticipated future events including the entering into of an amended and restated loan agreement, the potential use of proceeds of the Credit Facility, the cash flow position of Electric Royalties, the valuation and production schedule of royalties, and the pipeline of opportunities for Electric Royalties are forward-looking statements. Although the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements including as a result of the failure of the parties to enter into the amended and restated loan agreement or obtain regulatory approvals, the availability of royalties, the production of properties underlying royalties not being as anticipated, and the Company's cash flow position deteriorating as a result of business or economic conditions.

SOURCE: Gleason & Sons LLC



View source version on accesswire.com:
https://www.accesswire.com/794823/gleason-sons-commits-to-providing-electric-royalties-with-10-million-convertible-credit-facility-for-acquiring-cash-flowing-royalties

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Electric Royalties Announces Appointment of New Director

Electric Royalties Announces Appointment of New Director

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce the appointment of Stefan Gleason as a director of the Company, effective December 11, 2023

Brendan Yurik, CEO of Electric Royalties, commented: "We thank Stefan Gleason, our largest shareholder, for his ongoing commitment to Electric Royalties and belief in our business model, and welcome him to the board of directors. We are particularly excited about the prospect of leveraging his extensive business experience to further enhance and accelerate the growth of the Company. We look forward to the valuable insights and contributions he will bring to the table."

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Electric Royalties Provides Update on Five Royalties in Portfolio

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Brendan Yurik, CEO of Electric Royalties, commented: "Although production is curtailed at the Penouta Mine, it's very exciting to see management of the Graphmada graphite project focus on finding a strategic partner to recommence mining operations at potentially higher production rates. We're also pleased to note the updated resource estimate for the Seymour Lake lithium project ahead of the highly anticipated preliminary economic assessment - positioning the project to potentially be one of the first lithium mines in Ontario. Additionally, the proposed project financing support by UK Export Finance for up to US$598 million covering 70% of the expected project capital expenditures for the Mont Sorcier iron and vanadium project is a great vote of confidence in the robust nature of the project.

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The Company also announces that further to its September 27, 2023 news release, it has completed the C$1,050,000 drawdown (the "Previous Drawdown") under the Credit Facility with the Lender to fund the cash payment to acquire the additional 0.5% GRR on the Bissett Creek project, as well as its associated transaction costs.

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Electric Royalties Signs Letter of Intent To Acquire Portfolio of 126 Lithium Properties in Eastern Canada

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Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce that the Company has entered into a Letter of Intent with Perry English, Michael Kilbourne, 1544230 Ontario Inc. and Gravel Ridge Resources Ltd. (together, the "Vendors"), dated November 3, 2023, to acquire a portfolio of 126 lithium properties in Eastern Canada (the "Transaction

Brendan Yurik, CEO of Electric Royalties, commented: "This proposed acquisition comprises a land package of 126 properties totalling over 1,000,000 acres of highly-prospective lithium prospects in Eastern Canada - a region that could be the center of clean energy metals production for decades to come. Of these 126 properties, 101 have been optioned to various companies under a royalty prospect-generation model, whereby exploration companies make cash payments to the royalty prospector. This generates near-term cash flow while maintaining long-term upside via royalties on those assets.

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Electric Royalties Provides Update on Nine Royalties in Portfolio

Electric Royalties Provides Update on Nine Royalties in Portfolio

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to provide the following update on its royalty portfolio

Brendan Yurik, CEO of Electric Royalties, commented: "We're pleased to note new developments across our portfolio, including the financed and upcoming drill programs at the Cancet, Chubb and Seymour Lake lithium projects; Northern Graphite's continued push to become one of the only major graphite producers outside of China with the Bissett Creek graphite project playing a key role; metallurgical work nearing completion for the Battery Hill manganese project ahead of the planned pre-feasibility study; and advancements at the Mont Sorcier iron and vanadium project towards a US$420 million financing package with UK Export Finance.

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Altech Batteries Ltd  CERENERGY Battery Project Funding Update

Altech Batteries Ltd CERENERGY Battery Project Funding Update

Perth, Australia (ABN Newswire) - Altech Batteries Limited (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is pleased to announce an update on funding of the CERENERGY(R) sodium-chloride solid-state battery project in Saxony, Germany.

Highlights

- Financing plan and target structure in place

- Funding investment teaser documents and data room established

- Reach out to 10 commercial banks and 2 venture debt funds - all positive interests

- Shortlisting potential lead bank

- Equity Funding - potential sale of minority interest of the project to realise capital and strategic value

- Discussions and draft term sheets shared with investors

- Offtake agreement LOI signed with ZISP

On 14 June 2024, the Company, through its Germany subsidiary Altech Batteries GmbH ("ABG"), announced the appointment of global big four professional services firm ("funding adviser") to assist in securing finance for the construction of Altech's 120MWh CERENERGY(R) battery manufacturing plant in Germany. The project's financing strategy is structured across three key areas: debt, equity, and grants.

These sources will cover not only the capital expenditures but also financing costs, working capital, debt service coverage, and an additional contingency for potential business interruptions, See Figure 1*.

DEBT PROCESS

A funding invitation document (investment teaser) has been finalised and distributed to various financial institutions for debt funding in the project. The Group has engaged ten commercial banks and two venture debt funds in a first market round, receiving predominantly positive initial feedback. Several of these institutions have expressed strong interest in participating in the financing. The Group is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project. To support a thorough due diligence process, a secure data room has been set up, providing detailed project information to interested financiers and ensuring full transparency. The DFS financial model has been adjusted to stress-test various funding scenarios tailored to the lending institutions ABG has engaged with. Further steps involve determining the most suitable banks to form a syndicate and appointing a lead bank to guide the lending process. This syndicate will play a crucial role in structuring the financing arrangement to meet the project's requirements.

EQUITY FUNDING

In addition to ongoing debt financing efforts, the Group has engaged several equity advisers to support the equity component of the project's funding package. As part of this strategy, the Altech Group plans to divest a minority interest in the project to one or two strategic investors. This partial divestment aims to attract investors who can bring not only capital, but also strategic value to the project, aligning with the CERENERGY(R) project's long-term growth and sustainability objectives.

The Group is specifically targeting large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition. These entities are seen as ideal partners due to their strong alignment with the project's focus on sustainable energy solutions, as well as their capacity to provide substantial financial backing.

To date, significant progress has been made in these equity discussions. Several Non-Disclosure Agreements (NDAs) have been signed, allowing for deeper engagement with prospective investors. Altech has also circulated draft term sheets to a number of interested parties, outlining the proposed terms and conditions for investment. These documents serve as a starting point for negotiations, paving the way for more detailed discussions regarding the potential equity stake and partnership structure.

The strategic decision to divest a portion of the project is aimed at reducing the overall financial burden on the Company while bringing in experienced partners who can contribute to the project's success. By securing both the equity and debt components, the Company aims to finalise the full financing package, ensuring the timely construction and commissioning of the CERENERGY(R) battery plant. The next steps will focus on advancing these discussions and converting interest into formal commitments, which are crucial for moving forward with the project.

OFFTAKE ARRANGEMENTS

On 13 September 24, Altech announced the execution of an Offtake Letter of Intent between Zweckverband Industriepark Schwarze Pumpe (ZISP) and Altech Batteries GmbH. Under this Offtake Letter of Intent (LOI), ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production. The price of these batteries has been agreed and aligns with the sales price contained within Altech's Definitive Feasibility Study. The purchase of these batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements. This offtake LOI constitutes an important aspect of the financing process. This lays the foundation for additional offtake arrangements, which are currently in progress. These agreements are vital for advancing our financing and construction timelines for the CERENERGY(R) project.

CEO and MD Mr Iggy Tan stated "The funding stage of any project is the most complex and challenging process of any project. Securing a big four funding adviser with expertise and a global network is a major step in our financing efforts. Altech is advancing both debt and equity discussions, along with offtake agreements, to fully fund the CERENERGY(R) project. We are seeing strong interest, especially from European banks and potential equity partners".

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/PO741A78

To view MD Iggy Tan explain the Funding, please visit:
https://www.abnnewswire.net/lnk/23705649



About Altech Batteries Ltd:  

Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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/NOT FOR DISTRIBUTION TO UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/

TSX Venture Exchange (TSX-V): LIT
Frankfurt Stock Exchange (FSE): OAY3
OTCQX Venture Market: LILIF

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