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December 17, 2021updated 07 Jan 2022 7:00am

Electric Royalties to acquire 1% NSR in Norwegian nickel project

The Råna Nickel-Copper-Cobalt project is jointly owned by Global Energy Metals and Scandinavian Resource.

Electric Royalties has agreed to acquire a new 1% net smelter royalty (NSR) for the Rana Nickel Project on the Ofoten Fjord in Norway.

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The project is jointly owned by Global Energy Metals (GEMC) and Scandinavian Resource Holdings (SRH).

According to the agreement, Electric Royalties will issue two million of its common shares and pay $100,000 in cash to GEMC and SRH in proportion to ownership.

The project comprises the past-producing Bruvann Ni-Cu-Co mine, which was in production from 1989 to 2002. It processed ore of 8.2 million tonnes at an average grade of 0.52% Ni, 0.1% Cu and 0.02% Co.

Under the agreement, GEMC will sell the NSR on four exploration licences totalling 25km² of the Råna Project.

Electric Royalties CEO Brendan Yurik said: “Under-explored, historically producing nickel mines like Rana in tier one jurisdictions are an excellent place to search for future nickel supply to fill the looming supply/demand gap in an ESG friendly way and with less risk than greenfield projects.

“Now with Metals One coming in to commit to advance Rana in 2022, we’re expecting major updates on more than 60% of our portfolio next year.”

GEMC president and CEO Mitchell Smith said: “This transaction with Electric Royalties is another example of GEMC executing on strategy and providing shareholders with increased exposure to the raw materials that are powering an electrified future.”

Separately, battery minerals exploration company Metals One agreed to acquire a 90% stake in the Råna Project from SRH.

Metals One will spend £1m on an exploration work programme within the first 12 months.

Earlier this year, DeepOcean agreed to buy a controlling stake in marine minerals exploration firm Adepth Minerals.

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Free Report
img

How is the Mining industry adopting electric technologies?

As miners strive to reduce greenhouse gas emissions, many, particularly those with underground mines, are beginning to invest in battery-powered and electric-powered mining fleets. As of March 2022, GlobalData was tracking 207 trolley assist trucks operating on surface mines across the globe. Based on our analysis, the largest population of trolley assist trucks was in Zambia, followed by Namibia and Panama. In the same time frame, GlobalData was also tracking 157 electric loaders (LHDs) and 45 electric trucks operating in underground mines across the globe. Our analysis revealed that the combined largest population of electric LHDs and trucks was in Canada, followed by Russia, Sweden and Australia. Our report provides:
  • A summary of specific battery/electric surface and underground equipment – namely trolley trucks, underground mining trucks and underground LHDs
  • Active population of trolley assist and battery-powered trucks worldwide by country & mine
  • Active electric LHDs and trucks population worldwide by country & mine
  • Number of electric LHDs & trucks operated by miner
Download this report to better understand the rise of electric vehicles in mining and pinpoint investment opportunities.
by GlobalData
Enter your details here to receive your free Report.

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