TIDMTRR
RNS Number : 5427D
Trident Royalties PLC.
29 October 2020
29 October 2020
Trident Royalties Plc
("Trident" or the "Company")
Completion of Lake Rebecca Gold Royalty Acquisition
Further to its announcement of 24 September 2020, Trident is
pleased to announce that all pre-conditions to the Lake Rebecca
Gold Royalty Acquisition (as defined below) have now been satisfied
and that completion will occur automatically on Admission (as
defined below).
On 24 September 2020, the Company announced that it had entered
into a binding agreement to acquire an existing 1.5% Net Smelter
Return ("NSR") gold royalty over tenement E28/1610 (the "Lake
Rebecca Gold Royalty Acquisition"), which hosts the entirety of the
million-ounce Lake Rebecca Gold Project ("Lake Rebecca"), currently
owned and operated by ASX-listed Apollo Consolidated ("Apollo") in
Western Australia. The Royalty was acquired for a total
consideration of A$7,000,000 in cash (approx. US$5,000,000) and
A$1,000,000 to be satisfied by the issue of 1,862,556 new ordinary
shares of 1p each in Trident ("Consideration Shares") at 29.39p per
Ordinary Share.
The royalty is payable on production from exploration licence
E28/1610 which is currently pending conversion to a mining licence
(M28/400, application date 2 December 2019), and covers the
entirety of the Cleo, Duke, Duchess and Rebecca deposits which are
collectively referred to as the "Lake Rebecca Gold Project." Apollo
is aggressively pursuing the development of Lake Rebecca following
the publication of a conservative open-pit shell constrained 1.035
million ounce JORC (2012) compliant maiden Mineral Resource
Estimate(1) in February 2020 (Indicated + Inferred resource of
27.1Mt @ 1.2g/t Au, with 0.5g/t Au cut-off & A$2,250/oz gold
price). Nick Castleden, the MD of Apollo, recently stated that
"construction is expected to commence in 18-24 months." Trident
internal estimates indicate a long-life, substantial gold operation
- providing a key cornerstone asset to underpin the precious
metals' allocation in Trident's portfolio.
Settlement and Dealings
Application has been made to the AIM Market of the London Stock
Exchange Plc ("AIM") for admission to trading of the 1,862,556 new
Consideration Shares, which rank pari passu with the Company's
existing issued Ordinary Shares. Dealings on AIM are expected to
commence at 8:00am on or around 30 October 2020 ("Admission").
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission
Trident will have 105,362,556 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
105,362,556 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.
1 - Apollo Consolidated ASX announcement 10 (th) Feb 2020
( https://www.asx.com.au/asxpdf/20200210/pdf/44dyphpx3pl45r.pdf
)
Adam Davidson, Chief Executive Office of Trident commented:
"We are delighted to complete the acquisition of the Lake
Rebecca Gold Royalty which will provide our shareholders with
precious metals exposure from a significant and growing asset in
the world's top mining jurisdiction. At this early stage, Trident
believes that Lake Rebecca is on track to support a circa 100koz/yr
operation, located in a desirable jurisdiction being supported by
gold prices at close to all-time highs. Acquiring attractive
development stage royalties with a clear pathway to production has
been proven to deliver value to investors, with many major and
mid-tier royalty companies built on acquisitions such as this."
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson +1 (757) 208-5171
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Seamus Fricker +44 020 7383 5100
-------------------------
Tamesis Partners LLP (Financial www.tamesispartners.com
Adviser and Joint Broker) +44 203 882 2868
Richard Greenfield
-------------------------
Shard Capital Partners LLP (Joint www.shardcapital.com
Broker) +44 207 186 9927
Erik Woolgar / Isabella Pierre
-------------------------
Yellow Jersey (Public Relations) www.yellowjerseypr.com
Charles Goodwin +44 7747 788 221
-------------------------
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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END
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