Strategic Minerals Announces Closing of Gross Revenue Royalty Transaction with Electric Royalties
TORONTO, Jan. 24, 2023 /CNW/ - 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, is pleased to announce that it has closed the previously announced gross revenue royalty transaction (the "Transaction") with Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties") (see November 15, 2022 news release). In connection with the Transaction, the Company, through its wholly-owned subsidiary Strategic Minerals Spain, S.L.U., granted Electric Royalties a 0.75 percent gross revenue royalty on the Company's Penouta tin-tantalum mine in Spain (the "Penouta Mine") in exchange for a cash payment of C$1.0 million and 500,000 common shares of Electric Royalties.
Electric Royalties also has the option for a period of seven months from the date hereof to acquire an additional 0.75% royalty at the Penouta mine in consideration of a further cash payment of C$1.25 million. The royalty rates will be reduced to 0.5%, once C$1.67 million in royalty revenues have been paid to Electric Royalties.
The Penouta Mine is located in the northwestern Spanish province of Ourense and is currently the largest tin and tantalum producer in Europe. In January 2022, the Company re-commenced open pit production of tin and tantalum, and in June 2022, it received an exploitation permit to mine for 30 years, renewable for up to 75 years.
"With the completion of this Transaction, we will continue with our program of increasing the production and efficiency of the Penouta Mine, and through our association with Electric Royalties, we will continue to contribute to a much-needed energy transition," said Jaime Perez Branger, CEO of Strategic Minerals. "Combined with our recent power purchase agreement for the supply of seven gigawatts of largely renewable-sourced electricity per year for five years, we have established the Company as the key ethical supplier in Europe of the metals for the new green economy."
Strategic Minerals' wholly-owned subsidiary, SMS, produces, identifies, explores, and develops mineral resource properties critical to the green economy, predominantly in Spain. SMS holds permits, and a production license for the Penouta Project, and a 30% carried joint venture interest in the Alberta II/Carlota Lithium Project. SMS is the largest producer of cassiterite concentrate and tantalite 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 and, through the Alberta II/Carlota Joint Venture, is exploring for lithium. 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 sedar.com and its website at www.strategicminerals.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 expectations relating to the increase in efficiency at Penouta, the impact of the Transaction and the Company's position as a leader in sustainability, and other statements that are not historical facts. 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. 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.
SOURCE Strategic Minerals Europe Corp.