Completion of Talga Gold Royalty Package

RNS Number : 8607T

Trident Royalties PLC.

30 March 2021

 

30 March 2021

Trident Royalties Plc

("Trident" or the "Company")

Completion of Talga Gold Royalty Package Acquisition

Trident Royalties Plc (AIM: TRR, FSX: 5KV), is pleased to announce that all pre-conditions to the Talga Gold Royalty Package Acquisition (as defined below) have now been satisfied and that completion will occur automatically on Admission of the Consideration Shares (as defined below).

On 28 August 2020, the Company announced that it had entered into a binding agreement to acquire a package of existing gold royalties (the "Royalty Package") covering four projects located in the prospective Pilbara and Yilgarn regions of Western Australia, Australia. The Royalty Package was acquired for total consideration of A$800,000, of which A$250,000 was payable in cash (of which A$125,000 has been paid with A$125,000 due upon completion) and A$550,000 to be satisfied by the issue of 848,059 new ordinary shares of 1p each in Trident ("Consideration Shares") at 35.98p per Ordinary Share.

The Royalty rate applicable to each royalty is:

· Talga Talga - 1.5% Net Smelter Royalty

· Warrawoona - 1.5% Net Smelter Royalty

· Mosquito Creek - 1.5% Net Smelter Royalty

· Bullfinch - 1.0% Net Smelter Royalty

Settlement and Dealings

Application has been made to the London Stock Exchange Plc for admission to trading on the AIM Market of the 848,059 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 or around 31 March 2021 .

Total Voting Rights

For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission, Trident will have 171,224,335 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 171,224,335 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:

"We are delighted to be acquiring the gold royalty package from Talga. The package provides Trident with exposure to a portfolio of prospective tenements in a Tier 1 jurisdiction, many of which are being meaningfully advanced by credible and well-funded operators"

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.

 

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