TIDMTRR
RNS Number : 3150C
Trident Royalties PLC.
18 June 2021
18 June 2021
Trident Royalties Plc
("Trident" or the "Company")
Appointment of Ex-Glencore Senior Executive as Chair
& Board Changes
Trident Royalties Plc (AIM: TRR, FSX: 5KV), is pleased to
announce the appointment of Paul Smith as Non-Executive Chair with
effect from 21 June. James Kelly will step down as Chair from that
date but will remain on the Board as a Non-Executive Director.
Additionally, Mark Potter will step down from his position as a
Non-Executive Director with immediate effect, to pursue other
business interests. As set out in more detail below, Mr Smith has
indicated a willingness to make an equity investment in the Company
and it is intended that Mr Smith will today subscribe for new
shares in Trident with a value of GBP1 million at a price of 40p
per share (the "Subscription Price") and up to a further GBP1
million at the Subscription Price within the next 12 months.
Paul Smith worked for Glencore Plc from 2011 until 2020. As Head
of Strategy, his principal areas of focus were capital markets,
mergers and acquisitions, and capital allocation. During this
period Glencore successfully completed numerous large scale
corporate and capital markets transactions, most notably the $90bn
merger with Xstrata Plc.
While at Glencore, Paul was also the CFO of Katanga Mining
Limited, Glencore`s TSX listed subsidiary from 2019 until its
de-listing in 2020. In addition, he represented Glencore as a
non-executive director of Lonmin Plc and Glencore Agriculture
Limited.
Prior to Glencore, Paul was an analyst and fund manager at
Marshall Wace Asset Management, where he focused on cyclical
sectors, including mining. Paul qualified as a Chartered Accountant
before working in investment banking at Close Brothers and Credit
Suisse. He has an MA in Modern History from Oxford University.
Paul Smith, commented:
"I am delighted to have been asked to become the new Chairman of
Trident Royalties at what is an exciting time in the Company's
development. Under James's leadership, Trident has quickly
established itself as a credible provider of metals royalties and
streams, with 12 royalties already in place and others under
consideration. Trident is well positioned to grow through a
combination of primary issuance of royalties and streams and by
consolidating the extensive pool of existing ones.
"De-carbonising the global economy will require material
increases in the production of enabling metals, such as copper. The
cost of building the associated incremental mine capacity will be
in the hundreds of billions of dollars. This will lead to an
increasing demand for alternative sources of development capital,
including royalties and streams.
"Trident's goal is to build a large-scale royalty and streaming
company which is also diversified by the commodity, geography and
maturity of the underlying projects. I look forward to helping Adam
and his team to maximise the value of this opportunity for our
shareholders."
James Kelly, commented:
"I am exceptionally proud that in a little over 12 months, we
have rapidly executed on our strategy and built Trident into a
diversified mining royalty company with a portfolio of attractive
assets, operating cash flow and a board and management team of the
highest calibre. We have enjoyed strong growth in both the share
price and market capitalisation; testament to the strategy and the
hard work of all involved.
"We now have a solid platform for further growth, and I am
delighted that Paul will be joining us as our new chairman. I
believe that Paul, with his experience and network, is well
qualified to lead Trident for this next phase as we look to rapidly
scale the business.
"I would also like to take the opportunity to thank Mark for his
contribution to Trident; his royalty and investing experience has
been invaluable to both the board and the Company as a whole and we
wish him well in his future endeavours."
Proposed investment of up to GBP2 million
Paul Smith, through Collingwood Capital Partners AG, a Company
of which Paul Smith is the sole shareholder, intends to invest up
to GBP2 million in the Company. It is proposed that this will
comprise an initial subscription for 2,500,000 new ordinary shares
of GBP0.01 each in the capital of the Company ("Ordinary Shares")
at a price of 40p per share for aggregate proceeds of GBP1,000,000.
This subscription is expected to take place prior to his
appointment to the Trident board. The Subscription Price represents
a premium of 4% to the volume weighted average price for the
Ordinary Shares in the 5 trading days prior to the date of this
announcement.
In addition, Collingwood Capital Partners AG will have the
right, exercisable at any time up to 17 June 2022 to subscribe for
an additional 2,500,000 Ordinary Shares at the Subscription Price,
such period being extended where any exercise would be prohibited
by law on the business day prior to the expiry of the right.
The investment agreement is expected to be signed with
Collingwood Capital Partners AG later today and a further
announcement will be made in due course.
Revised board committees
Following the board changes set out above, from Paul's
appointment becoming effective the sub-committees of the board will
be amended and will be constituted as follows:
Audit Committee Remuneration Committee Nominations Committee
James Kelly (Chair) Al Gourley (Chair) Paul Smith (Chair)
----------------------- ----------------------
Al Gourley Helen Pein James Kelly
----------------------- ----------------------
Paul Smith Paul Smith Helen Pein
----------------------- ----------------------
Letter of Appointment
Paul Smith and the Company will enter into a letter of
appointment for an initial term of 12 months from 21 June 2021,
subject to his re-election at the Company's AGM. Thereafter his
appointment will continue until terminated by either party on six
months' notice. Paul Smith will be paid GBP85,000 per annum and in
line with other directors he has agreed to apply of portion of
this, being GBP25,000 in the case of Paul Smith to the subscription
for shares following the announcement of the Company's annual
results at the 5-day volume weighted average price for the 5
trading days prior to the payment date. Such subscription will be
pro-rated for 2021.
Further regulatory Information in relation to the appointment of
Mr Paul Smith
Full name: Paul Norman Smith
Age: 50 years
--------------------------------
Current directorships or Collingwood Capital Partners AG
partnerships:
--------------------------------
Former directorships or partnerships Glencore Agriculture Limited
(previous 5 years):
--------------------------------
Ordinary shares held in the 42,000 (0.02% of the Company's
Company issued share capital)
(at 18 June 2021 and prior
to the Investment referred
to in this announcement)
--------------------------------
There is no further information required to be disclosed under
Rule 17 or paragraph (g) of Schedule 2 of the AIM Rules for
Companies.
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 www.tridentroyalties.com
Adam Davidson +1 (757) 208-5171
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison / +44 020 7383 5100
Lukas Girzadas
---------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield +44 203 882 2868
---------------------------
Shard Capital Partners LLP (Joint Broker) www.shardcapital.com
Erik Woolgar / Isabella Pierre +44 207 186 9927
---------------------------
St Brides Partners Ltd (Financial PR www.stbridespartners.co.uk
& IR) +44 20 7236 1177
Susie Geliher / Catherine Leftley /
Charlotte Hollinshead
---------------------------
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.
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