Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB: SNTAF) 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 with Electric Royalties Ltd. (TSX-V: ELEC) (OTCQB: ELECF) (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 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.”
About Strategic Minerals Europe Corp.
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.
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