According to Mining News Pro - Under the terms of the agreement, ERL also has a two-year option to acquire an additional half of 1% GRR by paying $750,000, of which 25% can be paid in ERL shares. Northern, on the other hand, has the option to buy back half of 1% of the initial GRR at any time after 12 months by returning the consideration shares or paying $1.5 million in cash.

“Bissett Creek is a high margin project and the sale of a small royalty has very little effect on its economics,” Gregory Bowes, Northern CEO, said in a media statement. “The proceeds will provide a non-dilutive source of liquidity that will enable the company to continue waiting for a turnaround in graphite prices which it believes will come even if automobile manufacturers are only modestly successful at achieving their stated fleet electrification goals.”

Bissett Creek is an advanced stage project with a full feasibility study and a preliminary economic assessment. The property is located between the cities of Ottawa and North Bay in Ontario, Canada.