Silver Elephant Mining Corp (OTCMKTS:SILEF) was in the news yesterday after the company made a major announcement with regards to a series of royalty agreements.
The company announced that is signed royalty agreements by way of which it is going to hold a 2% royalty interest in each of its important projects. In this regard, it is also necessary to add that pursuant to a spin out and plan of arrangement that had been previously announced by Silver Elephant, all the royalties earned are going to be moved to Battery Metals Royalties Corp, a fully owned subsidiary of Silver Elephant.
It was a major announcement from the company and one that could have a long term on the company’s future. However, investors did not seem to be particularly happy about the whole thing.
After the announcement was made, the Silver Elephant stock actually suffered from a selloff and went down by as much as 4% as a consequence. In this context, it is important to point out that the royalties in question are going to be paid out when the prices of the underlying metal in the projects have been hit.