Electric Royalties to convert interest into shares

Executive Summary

• Electric Royalties Ltd. has elected to convert $420,000 of accrued interest on its convertible credit facility into 3,000,000 common shares at a price of $0.14 per share.
• The company simultaneously granted 700,000 incentive stock options to consultants at an exercise price of $0.14 per share for a three-year term.
• Both transactions are subject to TSX Venture Exchange approval, with the share conversion expected to occur in December 2025.

Key Details

• Interest Conversion:
  • Principal amount converted: $420,000.00 of accrued interest.
  • Shares issued: 3,000,000 common shares.
  • Conversion price: $0.14 per share.
  • Agreement: Amended and restated convertible loan agreement dated Feb. 16, 2024.
  • Expected issuance date: December 2025 (subject to TSX Venture Exchange acceptance).
  • Regulatory treatment: Treated as a "shares for debt" transaction under Policy 4.3 of the TSX Venture Exchange.
  • Resale restrictions: Conversion shares bear resale legends restricting transfer for four months and one day under Canadian securities laws and six months under U.S. securities laws.
  • Related party status: Exempt from "related party transaction" requirements under Policy 5.9 and MI 61-101 Section 5.1(h)(iii).
• Stock Option Grant:
  • Total options granted: 700,000 common shares.
  • Recipients: Certain consultants.
  • Exercise price: $0.14 per share.
  • Term: Three years.
  • Status: Subject to acceptance by the TSX Venture Exchange.
• Operational Context (CEO Quote):
  • CEO Brendan Yurik noted the conversion "virtually zeroes out all interest accrued to date."
  • Highlighted growing cash flows from the Punitaqui copper mine in Chile.
  • Mentioned an announced investment commitment by the U.S. government, Nrystar, and Korea Zinc related to the Middle Tennessee zinc royalty.

Notable Quotes

• "Today's conversion virtually zeroes out all interest accrued to date. We appreciate the ongoing support of our largest shareholder Stefan Gleason as the company's diversified portfolio of 43 royalties continues to develop and mature," said Electric Royalties chief executive officer Brendan Yurik.
• "As we head into 2026, we are pleased with our growing cash flows from the Punitaqui copper mine in Chile, the announced investment commitment by the U.S. government, Nrystar and Korea Zinc related to our past-producing Middle Tennessee zinc royalty, and the numerous other portfolio developments we shared with the market in recent weeks."