Electric Royalties Secures $3 Million Drawdown for Chilean Copper Royalty

Electric Royalties Ltd. announced a drawdown of C$3,050,000 from its C$10 million convertible credit facility with Gleason & Sons LLC. This funding partially covers the acquisition of a 0.75% Gross Revenue Royalty on the Punitaqui copper mine in Chile. The credit facility, bearing a floating interest capped at 12.5%, allows conversion of the loan into company shares before its maturity on January 12, 2028. The conversion price will be determined based on market conditions and TSX Venture Exchange guidelines.

The transaction qualifies as a "related party transaction" under Canadian regulations. It benefits from exemptions provided by MI 61-101, being approved by disinterested shareholders in March 2024. Pending completion of required approvals and conditions, the Punitaqui GRR acquisition will proceed.