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

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.