Electric Royalties closes $1 million private placement financing

Electric Royalties Ltd. (TSXV:ELEC)(OTCQB: ELECF) completed a non-brokered private placement financing of $999,999.70, the company announced.

The Vancouver-based royalty company issued 7,142,855 common shares at $0.14 per share. The transaction included $52,000 in shares issued to related parties, representing 371,428 common shares.

In connection with the financing, Electric Royalties paid $33,457.20 in cash and issued 238,980 finder warrants. Each warrant is exercisable at $0.16 per share for 12 months and is non-transferable.

The company plans to use net proceeds for working capital and general corporate purposes, including evaluation, legal and due diligence costs for potential strategic transactions under consideration.

"We are pleased to welcome several new investors who share our confidence in the Company's near-term catalysts and long-term growth potential," said CEO Brendan Yurik in a statement.

Electric Royalties operates a portfolio of 43 royalties across commodities including lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper. The company reported that more than 60% of outstanding shares are held by board members, their families, and founding partner Globex Mining Enterprises Inc. (TSX:GMX).

All securities issued are subject to a four-month and one-day hold period under applicable securities laws. The related party transaction was exempt from formal valuation and minority shareholder approval requirements as the fair market value did not exceed 25% of the company's market capitalization.

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