Acquisition

RNS Number : 7337U

Trident Royalties PLC.

08 April 2021

 

8 April 2021

Trident Royalties Plc

("Trident" or the "Company")

Completion of Pukaqaqa Royalty Package Acquisition,
Issue of Consideration Shares

and

Total Voting Rights

Trident Royalties Plc (AIM: TRR, FSX: 5KV), is pleased to announce that the pre-completion meeting for the Pukaqaqa Royalty Package acquisition (as defined below) from Orion Resource Partners has now been held and that completion will occur automatically on Admission of the Consideration Shares (as defined below).

On 18 December 2020, the Company announced that it had entered into a binding agreement to acquire a package of existing copper royalties (the "Royalty Package") over the Pukaqaqa Copper Project in Peru. The Royalty Package was acquired for total consideration of US$3,000,000 to be satisfied by the issue of 6,878,027 new ordinary shares of 1p each in Trident ("Consideration Shares") at 32.0314p per Ordinary Share.

Following Admission, Orion will be interested in 11,091,747 Ordinary Shares representing approximately 6.2 per cent. of the Company's issued share capital.

Settlement and Dealings

Application has been made to the London Stock Exchange Plc for admission to trading on the AIM Market of the 6,878,027 Consideration Shares, which rank pari passu with the Company's existing issued Ordinary Shares ("Admission"). Dealings on AIM are expected to commence at 8:00am on 9 April 2021.

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission, Trident will have 178,102,362 ordinary Shares of 1p each in the capital of the Company in issue with voting rights attached. Trident does not hold any shares in treasury. This figure of 178,102,362 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the DTRs.

Adam Davidson, Chief Executive Office of Trident commented:

"The completion of the acquisition of the Pukaqaqa Royalty Package increases our copper exposure with royalties over a large, long-life asset operated by an established mid-tier miner with deep roots in South America. We are delighted to have completed this transaction with Orion, which continues to demonstrate itself a professional and friendly counterparty, and we look forward to exploring further opportunities to transact with them in the future."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

** Ends **

Contact details:

Trident Royalties Plc Adam Davidson	www.tridentroyalties.com [phone]
Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Seamus Fricker	www.grantthornton.co.uk [phone]
Tamesis Partners LLP (Financial Adviser and Joint Broker) Richard Greenfield	www.tamesispartners.com [phone]
Shard Capital Partners LLP (Joint Broker) Erik Woolgar / Isabella Pierre	www.shardcapital.com [phone]
St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Catherine Leftley / Charlotte Hollinshead	www.stbridespartners.co.uk [phone]

About Trident

Trident is a growth-focused, diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.

Key highlights of Trident's strategy include:

· Building a royalty and streaming portfolio to broadly mirror the commodity exposure of the global mining sector (excluding thermal coal) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;

· Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;

· Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;

· Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers, such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;  

· Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and

· Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.

The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.

Forward-looking Statements

This news release contains forward ‐ looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward ‐ looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward ‐ looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward ‐ looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

Third Party Information

As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company has relied upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.

 

END

 

 

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