Elemental Royalties Limited (‘Elemental’ or the ‘Company’), a private company expanding a diversified portfolio of mineral royalties, is pleased to announce an increase to size of the private placement offering from C$15 million to approximately C$24 million to be completed in connection with the proposed reverse takeover of Fengro Industries Corp (‘Fengro’) by Elemental.

A news release made by Fengro today provides comprehensive background information. A link to this is provided below.

Elemental is pleased to confirm that the combined aggregate size of the brokered private placement offering of subscription receipts has been increased from C$15 million to approximately C$24 million (the “Offering”), to be completed in connection with the proposed reverse takeover of Fengro by Elemental (the “Transaction”). Canaccord Genuity Corp. has been engaged to act as lead agent and sole bookrunner, on behalf of a syndicate of agents, in respect of the Offering.

Pursuant to the terms of the Offering, 1249739 B.C. Ltd., a wholly-owned British Columbia subsidiary of Elemental (“ERL Finco”) will issue and sell subscription receipts (“ERL Finco Subscription Receipts”) at a price of $1.30 per ERL Finco Subscription Receipt for anticipated gross proceeds of approximately C$23 million. Each ERL Finco Subscription Receipt will, upon satisfaction of certain escrow release conditions, automatically convert, without any further action or further consideration from the subscription receipt holder, into one common share of ERL Finco (each an “ERL Finco Share”) and, immediately thereafter, upon completion of the Transaction, each ERL Finco Share will be exchanged for one post-Consolidation (as defined below) common share of Fengro (each a “Fengro Share”).

Prior to the completion of the Transaction, Fengro will complete a consolidation of the outstanding common shares on the basis of one (1) post-consolidation common share for each 209 pre-consolidation common shares held (the “Consolidation”).

Concurently with the issuance of the ERL Finco Subscription Receipts, and pursuant to the Offering, Fengro will issue subscription receipts (each, a “Fengro Subscription Receipt”) at a price of C$1.30 per Fengro Subscription Receipt for anticipated gross proceeds of approximately C$1 million. Each Fengro Subscription Receipt will automatically convert, without any further action or further consideration from the subscription receipt holder, into one Fengro Share immediately following the conversion of the ERL Finco Subscription Receipts.

The text above is Elemental Royalties’ comment to the operator’s news release and is not included within the original release. The original article is available using the links below.Download PDF: 
http://www.elementalroyalties.com/_resources/news/2020/200609-Fengro-Fundraise-Upsize.pdf?v=0.289

About Elemental Royalties Limited

Elemental provides investors with exposure to a dividend-paying royalty company building a diverse portfolio of mining royalties, benefiting from ongoing royalty revenue, future exploration upside and low operating costs.

Since early 2017 Elemental has assembled a portfolio of six royalties over seven commodities in five countries, five of which cover producing mines. Immediate cash-flow has enabled Elemental to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend from inception.

Elemental’s focus remains on securing royalties over advanced assets with established operators and credible counter-parties from a robust pipeline of potential royalty acquisitions across commodities and geographies.

For further information you are invited to visit the Company’s website www.elementalroyalties.com or contact:

Cautionary Note Regarding Forward Looking Statements

This press release may contain statements which constitute “forward-looking”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, and its directors, or officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions or the negative thereof, as they relate to the Company, or its management, are intended to identify such forward-looking statements.

Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.  These forward-looking statements speak only as at the date of this press release.  Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.