Completion of Spring Hill Gold Royalty Acquisition

RNS Number : 5521F

Trident Royalties PLC.

17 November 2020

 

17 November 2020

Trident Royalties Plc

("Trident" or the "Company")

Completion of Spring Hill Gold Royalty Acquisition

Further to its announcement of 14 July 2020, Trident is pleased to announce that all conditions to the Spring Hill Gold Royalty Acquisition have now been satisfied and the transaction has now completed.

On 14 July 2020, the Company announced that its wholy owned subsidiary TRR Services Australia Pty, Ltd. ("TRR") had entered into a binding agreement to acquire an existing variable price gold royalty ("Royalty") over production from the Spring Hill Gold Project ("Spring Hill"), located in Australia's Northern Territory, currently owned and operated by private Australian company PC Gold Pty Ltd. 

The uncapped Royalty provides for A$13.30/oz of gold produced from Spring Hill if the gold price is greater than A$1,500/oz, or A$5.70/oz if the gold price is less than A$1,500/oz. The current gold price is approximately A$2,580/oz. The Royalty was acquired for a total consideration of A$1,000,000, of which A$400,000 cash has been paid, with the remainder payable in two tranches in cash or new shares in Trident (at the election of TRR) upon satisfaction of various production milestones from Spring Hill.

In the event that TRR elects to satisfy any further tranche payments in new shares in Trident, the number of new shares to be issued shall be calculated at the volume weighted average price for the five trading days immediately prior to the date of the election and converted at the prevailing exchange rate.

The Royalty is payable on production from mining licence ML23812, which covers 1,035 hectares and hosts a JORC (2012) compliant Inferred Mineral Resource of 8.8Mt @ 1.26g/t for approximately 355,000oz of contained gold at a 0.5g/t Au cut-off. The Royalty also encompasses any future production from exploration licenses EL22957 and EL28855 which surround the granted mining lease.  

Spring Hill is currently being actively advanced by private company, PC Gold Pty Ltd. It is located 28km from an existing gold processing plant, which has successfully processed a bulk sample from the project, and benefits from access to attractive infrastructure.

Adam Davidson, Chief Executive Office of Trident, commented:

"We are delighted to complete the acquisition of the Spring Hill Gold Royalty which will provide our shareholders with additional precious metals exposure from an asset located nearby to existing infrastructure and processing facilities in a geologically compelling and proven gold province in Australia. In addition, the Royalty is structured such that Trident's risk is minimised until particular production milestones are achieved, whilst retaining uncapped exposure to the growth of Spring Hill."

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Contact details:

Trident Royalties Plc Adam Davidson	www.tridentroyalties.com [phone]
Grant Thornton (Nominated Adviser) Colin Aaronson / 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]
Yellow Jersey (Public Relations) Charles Goodwin	www.yellowjerseypr.com [phone]

About Trident

Trident is a growth-focused diversified mining royalty and streaming company, aiming to provide 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:

· Constructing 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 often largely relies 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.

 

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