Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB: SNTAF) ("Strategic Minerals" or the "Company"), a company focused on the production, development, and exploration of tin, tantalum and niobium, announces that it has entered into a letter of intent (the "LOI") with Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties") with respect to the proposed grant to Electric Royalties of a gross revenue royalty on the Company's Penouta tin-tantalum mine in Spain (the "Proposed Transaction").
Pursuant to the LOI, it is proposed that Electric Royalties will acquire a 0.75 percent gross revenue royalty on the production of the Company's Penouta mine in consideration for a cash payment of C$1.0 million and the issuance of 500,000 common shares in the capital of Electric Royalties to the Company. Electric Royalties will also have the option for a period of seven months from the closing date of the Proposed Transaction to acquire an additional 0.75 percent royalty at the Penouta mine in consideration for a further cash payment of C$1.25 million . The royalty rates will be reduced to 0.5 percent respectively once C$1.67 million in royalty revenues have been paid to Electric Royalties.
"With our recent record production of 80 tonnes of total concentrate from the Penouta mine in September, and our outlook for continued solid and stable production, we are pleased to announce this Proposed Transaction with Electric Royalties," commented Jaime Perez Branger , CEO of Strategic Minerals. "The proposed proceeds will be used for further improvements at the mine to increase production and efficiency."
Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.
Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to feed the electric revolution.
Electric Royalties has a growing portfolio of 20 royalties, including one royalty that currently generates revenue. Electric Royalties is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.
Strategic Minerals' wholly-owned subsidiary, Strategic Minerals Spain, S.L. ("SMS"), produces, identifies, explores, and develops mineral resource properties critical to the green economy, predominantly in Spain . SMS holds permits and a license for the Penouta Project, which allows the Company to produce and conduct exploration, and an investigation permit at the Alberta II Project, allowing it to conduct exploration work already underway. SMS is the largest producer of tin and tantalum in the European Union and has been recognized within the EU as an exemplary company of good practices in the circular economy. The Company is well-positioned as a major producer of sustainable and conflict-free tin, tantalum, and niobium. Strategic Minerals is a "reporting issuer" under applicable securities legislation in the provinces of British Columbia , Alberta , and Ontario .
Additional information on Strategic Minerals can be found by reviewing its profile on SEDAR at www.sedar.com .
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release, including, without limitation, management's beliefs regarding the completion of the transactions contemplated by the LOI (including the negotiation and signing of definitive agreement(s) related thereto) and the proposed use of proceeds that may be obtained from Electric Royalties in connection with the Proposed Transaction. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strategic Minerals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks Factors" in the Company's Annual Information Form dated March 29, 2022 , which is available for view on SEDAR at www.sedar.com . These risks include but are not limited to, the risks associated with the mining and exploration industry, such as operational risks in development or capital expenditures, the uncertainty of projections relating to production, and any delays or changes in plans with respect to the exploitation of the site. Forward-looking statements contained herein, including but not limited to the Company's anticipated exploitation of Section C of the Penouta Property and its use and development thereof, its use of the mineral processing capabilities, the ability to optimize and expand production, and its ability to increase the quality of the concentrate, are made as of the date of this press release, and Strategic Minerals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Strategic Minerals' operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of illness caused by COVID-19. It is not possible to accurately predict the impact COVID-19 will have on operations and the ability of others to meet their obligations, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect operations and the ability to finance its operations.
SOURCE Strategic Minerals Europe Corp.
SOURCE Strategic Minerals Europe Corp.
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