Elemental Royalties Corp. (TSXV:ELE) announced that it has entered into an agreement with Canaccord Genuity, on behalf of a syndicate of underwriters for a bought deal private placement of 8,000,000 subscription receipts at an issue price of CAD 1.50 per receipt for gross proceeds of CAD 12,000,000 on November 23, 2020. Each subscription receipt will entitle the holder thereof to receive one common share of company, without any further action on the part of the holder and without payment of additional consideration, upon satisfaction of the escrow release conditions including the satisfaction of all conditions precedent to completing the Acquisition. The aggregate gross proceeds of the offering, less 50% of the underwriters commission and certain expenses of the offering, will be held in escrow pending closing of the Acquisition. The underwriters shall have the option exercisable until the closing of the offering, to sell up to an additional 1,200,000 subscription receipts at the issue price for additional gross proceeds to the company of up to CAD 1,800,000. The transaction is expected to close on or about December 15, 2020 and is subject to customary regulatory and stock exchange approvals, including approval of the TSX-Venture Exchange.

On the same date, the company amended the terms of the transaction. The company will issue 10,000,000 subscription receipts for gross proceeds of CAD 15,000,000.