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August 31, 2021

EMX signs option agreement to sell five Swedish battery metal projects

EMX will receive up to a 6% equity interest in Bayrock Resources and annual advance royalty payments.

Canada-based EMX Royalty has signed an option agreement with Bayrock Resources subsidiary Swedish Nickel to sell five battery metals projects in Sweden.

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The assets considered for sale include the Kukasjarvi, Notträsk, Vuostok, Fiskelträsk, and Skogträsk projects.

Under the agreement, Swedish Nickel will have the option to acquire 100% interests in any or all of the projects through the issuance of cash or shares to EMX.

EMX will receive $45,577 (A$62,184) in cash, up to a 6% equity interest in Bayrock, 3% net smelter return (NSR) royalty and annual advance royalty payments.

The agreement will see Bayrock raising at least A$6m ($4.5m) within one year from the signing of the agreement, and issuing 5%-6% of Bayrock shares to EMX on a fully diluted basis.

In a press statement, EMX said: “The agreement with Swedish Nickel /Bayrock represents another example of EMX’s execution of the royalty generation aspect of its business model.”

The five projects are located in the Fennoscandian Shield, which is claimed to host several nickel deposits in Sweden, Finland and western Russia.

Each of the projects contains drill-defined zones of nickel-copper sulfide mineralisation developed in and around mafic to ultramafic intrusions, known as magmatic sulfide-style mineralisation.

EMX noted that the mineralisation zones are also variably enriched in cobalt and platinum-group-elements (PGE), key metals used in current battery technologies.

Occurrences and deposits of the projects were discovered in the 1970s and 1980s, with only limited and incomplete histories of follow-up exploration.

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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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