Home Sports SPEY RESOURCES CORP. ANNOUNCES the closing of the private placement

SPEY RESOURCES CORP. ANNOUNCES the closing of the private placement


Brendan Jurick, CEO of the company Royalties for electricity,commented:We are pleased with the results of the PEA, which project a robust economy based solely on the indicated resources of the northern Mont-Sorcier zone. This leaves significant growth potential from the conversion of estimated resources in the future. The project has good potential to expand production of high-grade, premium magnetite iron concentrate with valuable vanadium credits. In addition, favorable infrastructure can help reduce development times. We look forward to further favorable news from Voyager as it continues work on the feasibility study, expected in the first quarter of 2023, to bring Mont Sorcier to a formal development decision.”

PEA Highlights (all dollar values ​​in USD unless otherwise noted)1:

  • After-tax NPV at a discount rate of 8% is $1.6 billion and an internal rate of return of 43%
  • A potential 21-year life of mine (“LOM”), with positive after-tax cash flow starting in the first year of operation
  • Average annual EBITDA of $348 million and average annual free cash flow of $235 million for LOM
  • Annual production is expected to be approximately 5.0 million tonnes of high quality, low impurity iron concentrate with approximately 65% ​​iron and 0.52% vanadium pentoxide (“V”).2O5») per ton of concentrate
  • Total operating costs are $66 per ton of concentrate over LOM (including freight to China)
  • Initial capital costs estimated at $574 million include $118 million in contingencies
  • Payback period up to 2 years
  • A 21-year-old LOM uses a share of shared resources
  • Open pit mining with LOM strip ratio less than 0.9:1
  • There is potential to increase the value of the entire project through future upgrades of the North Zone Inferred Resources and the potential production of the South Zone Indicated and Inferred Resources, which is expected to improve economic performance through a potential increase in the total mine life or open the potential for future expansion of production capacity

Market research on iron and vanadium prices

Voyager commissioned an independent market pricing study in 2019 to determine the potential value of Mont Sorcier’s vanadium-rich iron product, given the lack of available market price indices. The study examined key price forecasts for the iron index, as well as estimates of eligible vanadium credits. The study looked at a cost-in-use methodology based on an analysis of the chemical composition of the Mont Sorcier brand and concentrate compared to other similar iron products. The study concluded that Mont Sorcier concentrate should command a $15/t premium to the Platts 65 iron price index for vanadium-bearing credits (based on net value attributed using long-term V2O5 price $7.25 per pound).

Prices for Mont Sorcier concentrate

Mont Sorcier Iron and Vanadium Concentrate is a high quality product with a low content of impurities. The silica level is slightly lower than the Platts 65 standard, but due to the low aluminum and phosphorus content it is considered a high purity iron and vanadium concentrate. This should attract improved pricing, provided that the customers (steel mills) that benefit from the absence of these elements are targeted. Fine particle size may result in a discount to the customer depending on the market; however, the magnetite content (and reduced sintering/granulation costs) may partially or fully offset the potential penalty. Based on various market studies and analyst forecasts for the iron ore and high iron content (65%) of the Mont Sorcier concentrate and vanadium credits, a long-term price of $135 per ton of concentrate (freight to China) was selected for use. in PEA.

Summary of the project

Mont Sorcier is located approximately 18 km east of Chibougamau, Quebec, in a region with a long mining history and an established infrastructure to support future development. Mont Sorcier has access to all-season roads, low-cost provincial hydropower and is within 50 km of rail links to two all-season ocean ports. The railway runs approximately 370 km to the port of Saguenay, which is currently underutilized and could provide sufficient capacity for the project’s needs.

The PEA is preliminary in nature and includes mineral resources that are not mineral reserves and have not demonstrated economic viability. There is no certainty that the PEA will be implemented.

David Gaunt, P.Geo., a qualified person independent of Royalties for electricityreviewed and approved the technical information in this release.

About Royalties for electricity Ltd.

Royalties for electricity is a royalty company created to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive to electrify various consumer products: cars, batteries, large-scale storage energy, production of renewable energy sources and other areas of application.

Electric vehicle sales, battery production capacity, and renewable energy production are projected to increase significantly over the next few years, and with it, demand for these target products. This creates a unique opportunity to invest in and acquire royalties for mines and projects that will supply the materials needed for the electric revolution.

Royalties for electricity has a growing portfolio of 20 royalties, including one royalty that is currently generating revenue. The company is focused primarily on receiving fees for advanced and ongoing projects to create a diversified portfolio located in low geopolitical risk jurisdictions that offers investors access to the clean energy transition through the core commodities needed to rebuild global infrastructure over the next several decades to decarbonization world economy.

For more information, please contact:

Brandon Jurick
general manager, Electric Royalties Ltd.
Phone: (604) 364‐3540
email: Brendan.yurik@electricroyalties.com

Scott Logan
Renmark Financial Communications Inc.
Phone: (416) 644-2020 or (212) 812-7680
email: slogan@renmarkfinancial.com

Neither the TSX Venture Exchange nor its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) nor any other regulatory body or securities exchange platform is responsible for the adequacy or accuracy of this release.


1 Technical report entitled “Preliminary Economic Evaluation of the NI 43-101 Technical Report (PEA) for the Mont Sorcier Project – Quebec, Canada” with an effective date of September 8, 2022, available at Voyager Metals Inc. on Sedar.com. The PEA for Mont Sorcier was based on a mineral resource estimate completed by InnovExplo and submitted to Voyager on July 22, 2022, using only the indicated resources in the northern zone. The PEA projects a robust economic evaluation for Mont Sorcier based on a traditional open pit mining scenario with magnetic separation treatment and a reverse flotation loop to produce approximately 5.0 million tonnes per year of low-sulfur vanadium, low-impurity iron concentrates. Based on tests to date, this material is suitable for use in blast furnaces in both China and Europe. The mineral resource estimate is in accordance with current CIM determination standards. The Mineral Resource estimate is limited to local pits for a potential open pit mining method with a 50° bedrock angle and a 30° overburden angle. The rounded marginal weight regain rate is reported to be 2.30%. The bulk content of the concentrate was calculated using the following parameters: royalty = 3%; mining cost = 3.30 Canadian dollars; mining disclosure cost = 2.45 Canadian dollars; processing cost = 3.62 Canadian dollars; G&A = C$0.75; selling expenses = CAD 58.36; Fe price = CAD 190/t; Exchange rate USD:CAD = 1.3; and mill recovery = 100% (concentrate). Marginal maintenance should be re-evaluated taking into account future market conditions (metal prices, exchange rates, mining costs, etc.).

Cautions Regarding Forward-Looking and Other Company Information

This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking information”) with respect to the Company within the meaning of Canadian securities laws. This press release contains information about other companies and projects owned by such other companies in which the Company has a royalty interest based on previously disclosed public information disclosed by those companies, and the Company is not responsible for the accuracy of this information, and that all information , presented herein is subject to this Cautionary Note regarding forward-looking and other company information.Forward-looking statements are generally identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or those that are inherently forward-looking. This information is a forward-looking statement, and actual events or results may differ materially. Forward-looking information may relate to the company’s future prospects and expected events and may include statements regarding financial results, future financial position, expected cash flow growth, business strategies, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and the company’s growth opportunities and the projects in which it has a royalty stake.

Although management believes these assumptions are reasonable, based on available information, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of the Company or these projects to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. . These risks, uncertainties and other factors include, but are not limited to, risks related to general economic conditions; adverse industry events; marketing costs; loss of sales markets; future legislative and regulatory changes involving the renewable energy industry; inability to access sufficient capital from internal and external sources and/or inability to access sufficient capital on favorable terms; the mining industry in general, the Covid-19 pandemic, recent market volatility, income tax and regulatory issues; the ability of the company or the owners of these projects to implement their business strategies, including expansion plans; competition; currency and interest rate fluctuations and other risks.

For a more complete discussion of all applicable risk factors and their potential impact, the reader is encouraged to review the Company’s most recent SEDAR filings and other information filed with OTC Markets, copies of which are available on the Company’s profile page at www.sedar.com and at otcmarkets.com.

SOURCE: Electric Royalties Ltd.

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