Electric Royalties talks critical metals portfolio

Executive Summary

• Electric Royalties Ltd. provided a comprehensive update on its critical metals royalty portfolio, highlighting significant operational advancements, new financing, and M&A activity across its 43 royalty holdings between December 2025 and March 2026.
• Key developments include a 50% increase in annual copper production plans at the Zonia project (Edge Copper), a $25-million financing raise for underground development at the Punitaqui mine (Battery Mineral Resources), and Korea Zinc’s $7.4-billion acquisition of Nyrstar USA’s Tennessee zinc assets.
• The company reported positive technical results including a PEA for Zonia with a $488M NPV, high-grade drill intersections at Kenbridge (Tartisan Nickel), and the commencement of a PFS at Battery Hill (Manganese X).

Key Details

• Zonia Copper-Oxide Project (Edge Copper Corp.):
  • Updated PEA released March 12, 2026, boosting annual copper production plan by 50% to 75 million pounds.
  • At $5/lb copper, expected annual royalty revenue is ~$1,875,000.
  • PEA Metrics: After-tax NPV (8%) of ~$488 million; After-tax IRR of ~23.4%.
  • Plan: Open pit mining and heap leach SX/EW processing. Total material mined: 354 million tons (218M resource, 136M waste). Average grade 0.25% Cu, containing 1.1 billion pounds of copper.
  • Drilling: 53,000 feet across 78 holes commenced Jan 22, 2026, for resource conversion and stepout exploration.
  • Next Steps: Updated mineral resource estimate expected Q4 2026; Prefeasibility Study (PFS) planned for 2027.
• Punitaqui Copper Mine (Battery Mineral Resources Corp.):
  • Financing: Non-brokered private placement LIFE offering announced Feb 9, 2026.
  • Terms: Minimum gross proceeds of $10 million; maximum of $25 million.
  • Shares: Minimum 50 million common shares; maximum 125 million common shares.
  • Price: 20 cents per common share.
  • Use of Proceeds: Advance processing plant operations and planned underground development at the Punitaqui mining complex in Chile, plus general working capital.
• Middle Tennessee Zinc Operations (Nyrstar USA/Trafigura):
  • M&A: Korea Zinc announced acquisition of Nyrstar USA (including East/Mid Tennessee mining complexes and Clarksville smelter) in a package totaling $7.4 billion.
  • Strategic Value: Clarksville is the sole primary zinc smelter in the U.S.
  • Timeline: Sale expected to close in the first half of 2026, subject to regulatory approvals.
  • Royalty Impact: Electric Royalties holds a sliding scale 1% to 1.4% gross revenue royalty (25% of the total).
• Battery Hill Manganese Project (Manganese X Energy Corp.):
  • PFS Status: Prefeasibility study officially underway.
  • Drilling: Targeted geotechnical drilling program commenced Feb 27, 2026, consisting of 3 drill holes totaling ~550 meters to determine optimal pit slope angles and refine geotechnical inputs.
  • IP: South African Patent Office granted patent for proprietary purification process for battery-grade manganese sulphate on Feb 10, 2026.
• Kenbridge Nickel Project (Tartisan Nickel Corp.):
  • Drill Results (Feb 3, 2026): 10.7m at 1.58% Ni and 0.79% Cu (including 5.0m at 3.02% Ni and 1.48% Cu).
  • Drill Results (Feb 24, 2026): 3,350m of drilling completed; intersected Zone A and Zone B, including 3.0m at 2.17% Ni and 1.45% Cu in Zone B.
  • Drill Results (March 12, 2026): 24.6m at 0.71% Ni and 0.56% Cu (including 6.1m at 1.17% Ni and 1.45% Cu).
• Millennium Copper-Cobalt Project (Metals Bank Ltd.):
  • MOU: Signed Feb 13, 2026, with Austral Resources to evaluate toll treatment of Millennium ore at the Rocklands processing facility.
  • Timeline: Potential to commence mining within two years, aligning with Rocklands restart.
  • New Lease: Mining lease and exploration permit application submitted Feb 18, 2026, for the Gap zone.
  • Graphite Intersections: High-grade graphite results reported Feb 23, 2026:
    • 13.1m at 12.23% TGC from 1m in hole MI25DD03.
    • 14.3m at 8.68% TGC from surface in hole MI25DD04.
    • 30.85m at 14.11% TGC from 60.4m in hole MI25DD04.
• Mont Sorcier Iron and Vanadium Project (Cerrado Gold Inc.):
  • Study Status: Feasibility study targeted for completion in Q2 2026.
  • Drilling: Infill drilling program completed (>17,000 meters) to update resources to proven/probable categories.
  • Production Target: Expanded scenario targeting 8 million tonnes per annum of 67% iron concentrate.
  • Previous PEA: NPV (8%) of $1.6 billion based on 65% iron concentrate.
• Graphmada Graphite Project (Greenwing Resources Ltd.):
  • Study Status: Stage 2 scoping study commenced Jan 30, 2026, to assess restart and expansion.
  • Funding: Discussions underway with government agencies and strategic partners for investment.
• Seymour Lake Lithium Project (Green Technology Metals Ltd.):
  • Financing: Export Development Canada (EDC) extended Letter of Interest (LOI) for up to $100 million on Jan 8, 2026.
  • Validity: LOI remains valid through December 2026.
• Penouta Mine Project (Strategic Minerals Europe Corp.):
  • Litigation: Electric Royalties contributed to a litigation funding agreement regarding a claim against the Xunta of Galicia for damages related to the unjustified suspension of the Section C permit.
  • Status: Permit suspended in H1 2024, leading to insolvency of SMS and sale of mine to third party. No assurance of recovery.

Notable Quotes

• Brendan Yurik, CEO: "With copper royalty revenue from our Chilean royalty ramping up and with a small equity raise late last year, the company entered 2026 on stable footing and is turning our focus to reviewing new strategic acquisition opportunities... Meanwhile, our existing portfolio of 43 royalties on battery and critical metals continues to mature."
• Guido Janssen, CEO, Nyrstar: "This transaction would enable a secure and stable U.S. zinc and zinc byproducts supply for the future... Korea Zinc is a world leader in smelting technology, and we are confident they will build on the strong foundations Nyrstar has laid in the State of Tennessee."