TIDMTRR
RNS Number : 1919L
Trident Royalties PLC
04 September 2023
4 September 2023
Trident Royalties Plc
("Trident" or the "Company")
Completion of Dandoko Royalty Acquisition,
Issue of Consideration Shares
and
Total Voting Rights
Trident Royalties Plc (AIM: TRR, OTCQB: TDTRF), is pleased to
announce that all pre-conditions to the Dandoko Royalty acquisition
in the binding acquisition agreement ("Agreement") have now been
satisfied and completion has occurred.
On 21 August 2023, the Company announced that it had entered
into a binding agreement to acquire a 50% interest in a 2% net
smelter royalty (the "Royalty") over the Dandoko Gold Project
permit area in western Mali owned by B2Gold Corporation Limited.
The Royalty was acquired for total consideration of up to US$6.25
million(1) .
Pursuant to the Agreement, Trident has paid US$3.0 million in
cash and will pay US$0.75 million in ordinary shares (together, the
"Upfront Payment"), which will be satisfied by the issue of
1,425,210 new ordinary shares of 1p each in Trident ("Consideration
Shares") at 41.9213p per Ordinary Share.
In addition to the Upfront Payment, in consideration of the
acquisition, Trident shall pay:
-- US$1.25 million in cash on first royalty receipt from the royalty area, and
-- US$1.25 million in cash on receipt of payment on 500,000
ounces gold sold from the royalty area.
Settlement and Dealings
Application has been made to the London Stock Exchange Plc for
admission to trading on the AIM Market of the 1,425,210
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 5 September 2023.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules ("DTRs"), following Admission,
Trident will have 292,730,176 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
292,730,176 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 Officer of Trident commented:
"The Dandoko Gold Royalty is an important addition to our
portfolio as the asset has the potential to provide near-term
cashflow to Trident. B2Gold is a senior producer with invaluable
operational experience with a long operating history in Mali. The
Fekola mine is a cornerstone asset for B2Gold and is expected to
produce approximately 600,000 ounces in 2023 at cash operating
costs of between $565 and $625 an ounce. Trident considers that
significant exploration upside exists at Dandoko, with B2Gold
currently deploying material capital towards exploration of the
area. We remain focussed on delivering value accretive deals which
broaden and diversify our portfolio to promote long-term
growth."
References
1: Source: Trident Royalties announcement dated 21 August 2023
(
https://www.londonstockexchange.com/news-article/TRR/acquisition-of-major-gold-exploration-royalty/16090618
)
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson / Richard Hughes +1 (757) 208-5171 / +44 7967
589997
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Samuel Littler
------------------------------
Stifel Nicolaus Europe Limited (Joint www.stifelinstitutional.com
Broker) +44 20 7710 7600
Callum Stewart / Ashton Clanfield
------------------------------
Liberum Capital Limited (Joint Broker) www.liberum.com
Scott Mathieson / Cara Murphy +44 20 3100 2184
------------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield / Charlie Bendon +44 20 3882 2868
------------------------------
St Brides Partners Ltd (Financial www.stbridespartners.co.uk
PR & IR) +44 20 7236 1177
Susie Geliher / Catherine Leftley
------------------------------
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, providing investors with exposure to a mix of
base battery, precious, and bulk metals.
Key highlights of Trident's strategy include:
-- Building upon a royalty and streaming portfolio which broadly
mirrors the commodity exposure of the global mining sector
(excluding fossil fuels) 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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