Electric Royalties Ltd. Announces Closing of $1,000,000 Private Placement

On November 6, 2025, Electric Royalties Ltd. announced the closing of a non-brokered private placement, raising gross proceeds of $1,000,000 CAD. The company issued 7,142,855 units at a price of $0.14 CAD per unit. Each unit consists of one common share and one common share purchase warrant, exercisable at $0.16 CAD for 12 months.

The proceeds are intended for working capital, general corporate purposes, and to cover evaluation, legal, and due diligence costs for potential strategic transactions. Finder's fees included $33,457.20 CAD in cash and 238,980 finder warrants, exercisable at $0.16 CAD for 12 months.

The private placement involved related parties, specifically board members and their families, and founding partner Globex Mining Enterprises Inc. The company stated that insiders now hold over 60% of Electric Royalties' outstanding shares, emphasizing a tight share structure and strong alignment with shareholders. The transaction was exempt from certain Multilateral Instrument 61-101 requirements.

CEO Brendan Yurik commented on welcoming new investors who share confidence in the company's near-term catalysts and long-term growth potential, especially in light of the current market valuation. He also highlighted efforts to reduce overhead costs over the past year while continuing to build a diverse portfolio of 43 royalties, including a ramping-up copper royalty (Punitaqui), three potential returns to production, and five advancing through studies.

This private placement provides a much-needed injection of $1,000,000 CAD into Electric Royalties' coffers. Given the company's cash and cash equivalents stood at $714,659 CAD as of March 31, 2025, this capital raise is critical for maintaining short-term liquidity and funding ongoing operations. The use of proceeds for working capital and general corporate purposes indicates a need to cover day-to-day expenses and explore potential opportunities.

However, the financing comes at a significant cost to existing shareholders: - Dilution: The issuance of 7,142,855 new shares adds to the already growing share count (now approximately 127.6 million shares outstanding), leading to further dilution. This is compounded by previous dilutive events, such as the February and August 2025 interest conversions on the convertible loan and the January 2025 private placement. - Low Issue Price: The units were issued at $0.14 CAD, which is at the lower end of the company's recent trading range and close to its 52-week low of $0.10 CAD. This low price reflects a struggle to attract capital at higher valuations and directly impacts the perceived value of existing shares. - Warrant Terms: The warrants attached have an exercise price of $0.16 CAD, just slightly above the issue price. This implies limited upside confidence among investors for a substantial near-term price increase, as well as providing potential for further dilution if exercised.

The CEO's positive framing of insider participation (over 60% ownership by board members and Globex) suggests confidence, but it also means control is concentrated and financing is repeatedly relying on a small group, often at market prices. While securing funds for operations is positive for continued development, the terms of this private placement and the recurring need for such financings at low valuations reflect underlying financial pressure. It is a necessary step for the company's ongoing survival rather than a transformative event. It addresses immediate capital needs but does not materially improve the company's long-term financial stability or valuation without a significant increase in royalty revenues.

Therefore, this news is assessed as "Routine - Neutral" because while it provides crucial working capital, it comes with significant dilution at an unfavorable share price, maintaining the status quo rather than providing a substantial positive shift.

Electric Royalties Ltd. is a royalty company specializing in acquiring and managing a diversified portfolio of royalties on projects that supply metals crucial for the clean energy transition. The company's strategy is to benefit from the production and exploration success of its operators without incurring the direct capital and operating costs associated with mining. As of September 2025, the company holds 43 royalties and has 29 optioned properties, spanning nine clean energy metals across stable jurisdictions primarily in North America, Europe, and Australia.

While the company has a diverse portfolio, several projects are often highlighted: - Punitaqui Copper Mine (Chile): This 0.75% Gross Revenue Royalty (GRR) is the company's first cash-flowing copper royalty, acquired in December 2024. The operator, Battery Mineral Resources Corp., is ramping up production with a goal to reach 2,500-2,700 DMT of copper concentrates per month by the end of 2025. Revenues of approximately C$210,000 have been received since the acquisition. - Seymour Lake Lithium Project (Ontario, Canada): This 1.5% Net Smelter Royalty (NSR) is operated by Green Technology Metals Limited. The project is advancing, with an updated PEA completed, metallurgical testwork showing positive results, and a Feasibility Study targeted for 2026 with potential production as early as 2027. The project has received a Letter of Interest for up to C$100 million in project financing from Export Development Canada. - Battery Hill Manganese Project (New Brunswick, Canada): A 2.0% Gross Metal Royalty (GMR) operated by Manganese X Energy Corp. The project has completed a PEA, and a PFS is underway, supported by a C$2 million investment from Eric Sprott. - Mont Sorcier Iron and Vanadium Project (Quebec, Canada): A 1.0% Gross Metal Vanadium Royalty operated by Cerrado Gold Inc. A Feasibility Study is funded and underway, with completion expected in Q1 2026. - Zonia Copper Oxide Project (Arizona, U.S.): A 0.5% GRR operated by World Copper Ltd. The project has doubled its resource estimate and is being acquired by a new European group focused on accelerating it to production. - Graphite Bull Graphite Project (Western Australia): A 0.75% GRR operated by Buxton Resources Limited. An updated mineral resource estimate increased contained graphite by 345%, and downstream qualification testwork is underway to inform a planned PFS. - Middle Tennessee Zinc Mine (U.S.): A 2.5% NSR on an idled zinc mine, significant for its germanium and gallium by-products, whose strategic importance has increased due to China's export restrictions. - Authier Lithium Project (Quebec, Canada): A 0.5% GMR, part of the producing North American Lithium (NAL) mine hub.

The company's focus on "safer jurisdictions" aligns with global efforts to secure critical mineral supply chains outside of regions like China.