Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Trident Royalties scales up and diversifies its portfolio

Published 30/01/2023, 08:24
Updated 30/01/2023, 10:12
Trident Royalties scales up and diversifies its portfolio

Trident Royalties scales up and diversifies its portfolio

Proactive Investors -

  • Aim-listed mining royalty specialist
  • Moved into lithium through second deal with Orion
  • £20mln raised to fund Thacker Pass deal

What it does

In recent months Trident has completed the cancellation of its main board listing, its re-listing on AIM, a £16mln fundraise, and the acquisition of a copper royalty over the Mimbula mine, which is currently ramping up production.

Subsequent to the listing, Trident has executed on the acquisition of the Spring Hill royalty, a strategically located development-stage gold asset in Australia.

Trident said it currently has many active non-disclosure agreements under which it is reviewing a range of opportunities, including in base and precious metals, as well as battery minerals.

The pipeline includes assets located in the Americas, Europe, Africa, and Australia.

How it’s doing

Trident has been busy since it listed and in December acquired a portfolio of three existing royalties over the Pukaqaqa Copper Project in Peru for a total consideration of approximately US$3mln.

In March, Trident Royalties acquired a 60% stake in an existing royalty stream from the Thacker Pass project, the largest lithium reserve in the US.

Orion Finance is selling the royalty for US$28mln, which Trident will meet through cash of US$26mln and US$2mln in shares.

The cash element is being largely funded by a placing and subscription of Trident shares at 34p per share to raise £20.2mln with a retail offer through PrimaryBid.com to bring in up to a further £0.5mln.

Alan Davidson. Trident's chief executive, said the placing was oversubscribed and completed without a discount to the market price, underlining the strength of Trident's investment case.

Thacker Pass is operated by Lithium Americas and the miner has a partial buyback option over the royalty that Trident expects to be exercised and will mean it receives US$13.2mln.

What the boss says: Alan Davidson

"Thacker Pass, which will become a cornerstone asset for Trident, will bring the addition of lithium, a key battery metal, to our portfolio alongside existing exposure to iron ore, copper and gold.

"This will provide an important new dimension to Trident as we continue to build a portfolio of royalties to broadly mirror the commodity exposure of the global mining sector, with battery metals representing an increasingly significant component of the industry."

Inflexion points

  • 15 potential royalties in the pipeline
  • Two royalties generating cash
  • Spring Hill exploration boosts resource

Read more on Proactive Investors UK

Disclaimer

Latest comments

Thacker Pass construction starts now and TRR 57p to buy
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.