Electric Royalties Ltd.

Electric Royalties Ltd. is a junior copper royalty and streaming company headquartered in Vancouver, Canada, operating primarily in Canada. Key assets include Penouta and Punitaqui. Portfolio composition includes 1 cash-flowing royalty, 12 development royalties, and 26 exploration royalties. The company operates as a non-operating royalty holder, acquiring interests such as net smelter returns and gross revenue royalties across various project stages, from exploration to production. This model provides exposure to commodity markets without direct operational or capital expenditure risks associated with mining. The business objective is to build a diversified portfolio to generate long-term, stable cash flows for capital appreciation and shareholder distributions. As a royalty holder, the entity has limited or no control over the underlying project operations, development timelines, or production decisions, and relies on the project operators for royalty calculations and payments. Access to non-public operational data is often restricted, which is an inherent characteristic of the business model.

Executive leadership includes a Chief Executive Officer and a board of directors, with a new Chair appointed in March 2025 who has served as an independent director since 2016. A key director is also a significant shareholder who controls the entity's primary lender, with related party transactions subject to regulatory compliance and shareholder approvals, as demonstrated by a special shareholder meeting held in March 2024. The management structure relies on sourcing necessary technical, geological, corporate communications, accounting, and administrative services from external providers on a non-exclusive basis, rather than maintaining a large internal team. Governance mechanisms include a stock option plan, a restricted share unit plan, and a deferred share unit plan for directors, officers, and consultants.

Corporate structure is influenced by significant shareholders who are also strategic partners. Gleason & Sons LLC, controlled by a director, holds over 10% of issued shares and is the sole provider of a C$10 million convertible credit facility, which is secured against a portion of the entity's royalty portfolio. This facility gives the lender conversion rights into common shares. Globex Mining Enterprises Inc. also holds over 10% of the company's shares and was the counterparty in a 2024 transaction where the company acquired a large portfolio of early-stage royalties. In December 2024, the organization completed a royalty acquisition from Battery Mineral Resources Corp. and its subsidiaries, funded partially through the aforementioned credit facility. Directors and officers, including the major shareholders, participate in company financings, such as the private placement closed in January 2025.