Electric Royalties secures 2% manganese royalty in New Brunswick project

In Canada, Electric Royalties Ltd. recently announced a significant update regarding the Battery Hill Manganese Project located in New Brunswick. The company holds a 2% Gross Metal Royalty on the project, which is operated by Manganese X Energy Corp. On January 2, 2025, Manganese X Energy Corp. declared its intention to conduct a non-brokered private placement offering aiming to raise up to C$2.1 million. This funding effort notably includes a substantial C$2 million commitment from prominent mining investor Eric Sprott. The investment reflects a strong belief in the project's potential as a primary North American source of high-purity manganese, crucial for the battery industry. The preliminary economic assessment from 2022 for the Battery Hill Project revealed projected gross revenue of approximately US$177 million annually, supported by an initial mine life forecasted to span 47 years. Furthermore, the assessment indicates a relatively short payback period, estimated to be less than three years, which bolsters the project's attractiveness to potential investors and stakeholders. Brendan Yurik, CEO of Electric Royalties, emphasized that Sprott's backing signals confidence in the project's capabilities and its role in meeting the increasing demand for battery-grade manganese. Electric Royalties is strategically positioned in a growing market driven by the electrification of consumer products, spanning various commodities including lithium, cobalt, and manganese among others. The rising demand for electric vehicle production, battery manufacturing, and renewable energy generation is expected to create significant opportunities for the mining sector. Electric Royalties has already secured a diverse portfolio of 41 royalties across crucial electrification commodities, reflecting its commitment to supporting the electric revolution. The success of the upcoming pre-feasibility study at Battery Hill represents a key milestone for all involved parties, particularly for Electric Royalties, which anticipates participating in this phase at no financial cost. While the interim information released through the preliminary economic assessment is encouraging, it is essential to note that it remains preliminary in nature. There is uncertainty surrounding the transition from mineral resources to reserves, with a recognition that some mineral resources carry inherent economic risks. Moving forward, the project's robustness will depend on accurate assessments and validations as Manganese X Energy operates toward fulfilling its development objectives.