2 May 2024
Trident Royalties
Plc
("Trident" or the
"Company")
Portfolio Update: Paradox
Lithium LG Offtake & Green River
Trident Royalties Plc (AIM: TRR, OTC: TDTRF), the
diversified mining royalty company, is pleased to
note recent positive announcements by
ASX-listed Anson Resources Ltd. ("Anson", ASX: ASN) in relation to
its Paradox Lithium Project ("Paradox") and its Green River Lithium
Project ("Green River"). Trident holds a 2.50% net smelter return
("NSR") royalty over Anson's projects in the Paradox
Basin.
Binding Offtake Term Sheet with LG Energy
Solution1
· Anson
Resources (via its 100% owned subsidiary A1 Lithium) and LG Energy
Solution ("LG") have executed a binding offtake term sheet for the
supply of battery grade lithium carbonate from Paradox.
· LG
Energy Solution is a global leader in delivering advanced
lithium-ion batteries for electric vehicles, mobility and IT
applications and energy storage systems. They have eight facilities
currently operating or under construction in North America, with
stand-alone facilities in Michigan and Arizona and six joint
venture facilities with major automakers.
· The
offtake term sheet contemplates the purchase by LG of 4,000 dry
metric tonnes per year of battery-grade lithium carbonate for an
initial period of five years beginning in 2027, with the ability to
extend for another five years thereafter. The offtake is subject to
the satisfaction of customary conditions precedent. This would
represent approximately 40% of the anticipated project start-up
production capacity of circa 10,000tpa.
· Pricing for lithium carbonate delivered under the offtake term
sheet is based on market prices.
· Additionally, LG and Anson have commenced discussions
regarding an investment by LG into Anson.
Green River Update2
· Anson
announced that it has successfully sampled the Mississippian Units
after the completion of the Bosydaba #1 well at Green River, which
is located on the recently purchased private property in the
Paradox Basin.
· The
flow of supersaturated brine confirms Anson's expectations that
Green River will be the location of its second lithium project in
Utah.
· Bulk
samples were stored in a 400-gallon tank and IBC containers and
will be used for continued process testing and metallurgical test
work. Samples collected will be sent to a certified laboratory in
Texas experienced in oil field brines, and will be assayed for
lithium, iodine, bromine, boron and other minerals. A large volume,
400-barrel tank, was also collected and stored at the Sample
Demonstration Plant ("SDP") for on-going process test
work.
· The
well will be left open to enable the extraction of additional brine
for on-going processing at the SDP should that be required. The SDP
is fully commissioned and has both the lithium extraction
capability as well as downstream purification. The plant is capable
of operating 24/7 and producing a high purity lithium carbonate
product as samples for potential off-take partners.
Bruce Richardson, Executive Chairman and Managing Director of
Anson, commented for the purposes of their
announcement1:
"The Inflation Reduction Act and other US policy initiatives
have resulted in significant investment in new battery
manufacturing in North America to meet the continued growth in
demand for electric vehicles in the US. This shift in manufacturing
investment has led to an increased demand for lithium produced in
the US, not only to shorten supply chains geographically but also
increase US content of electric vehicle batteries and electric
vehicles, to meet IRA incentive requirements. Anson identified this
change, targeted its offtake marketing activities to the companies
that have made these investments into North America and in
particular, the US where Anson's development work in the Paradox
Basin in Southern Utah is strategically positioned. We are
delighted to have reached agreement with LG Energy Solution
allowing us to execute our first binding Offtake Term Sheet for at
least 40% of our production. This establishes the foundation for a
long-term partnership and we are proud that we will be supplying US
made lithium from the Paradox Basin to LG Energy Solution, a
respected global leader in the lithium battery value chain,
building out the largest battery manufacturing capacity in the
US."
Adam Davidson, Chief Executive Officer of Trident
commented:
"We congratulate the Anson team for achieving
this offtake milestone for Paradox. LG is a household name in the
battery world. The Paradox offtake, coupled with a potential
investment from LG, demonstrates Paradox's tremendous potential as
a strategic source of US lithium. We look forward to continued
momentum at Paradox as the project moves to a final investment
decision.
"Meanwhile, we are pleased to see continued progress at Green
River. Green River has, to date, demonstrated similar potential to
Paradox and highlights the optionality embedded in this royalty,
providing Trident with scope for significant upside to the advanced
Paradox Lithium Project."
References
1:
Source: Anson Resources Ltd. news release, 1 May 2024
( https://wcsecure.weblink.com.au/pdf/ASN/02801921.pdf
)
2:
Source: Anson Resources Ltd. news release, 30 April 2024
( https://wcsecure.weblink.com.au/pdf/ASN/02800678.pdf
)
Competent Person's Statement
The technical information contained
in this disclosure has been read and approved by Mr Nick O'Reilly
(MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and
acts as the Competent Person under the AIM Rules - Note for Mining
and Oil & Gas Companies. Mr O'Reilly is a Principal Consultant
working for Mining Analyst Consulting Ltd which has been retained
by Trident to provide technical support. In relation to the mineral
resource estimates, the company confirms that the
material assumptions and technical parameters
underpinning the estimates in the relevant market announcements
continue to apply and have not materially changed, and
it is not aware of any new information or data
that materially affects the estimates.
** Ends
**
Contact details:
Trident Royalties Plc
Adam Davidson / Richard
Hughes
|
www.tridentroyalties.com
+1 (757)
208-5171 / +44 7967 589997
|
Grant Thornton (Nominated
Adviser)
Colin Aaronson / Samantha Harrison /
Enzo Aliaj
|
www.grantthornton.co.uk
+44 020
7383 5100
|
Liberum Capital Limited (Joint
Broker)
Scott Mathieson / Cara
Murphy
|
www.liberum.com
+44 20
3100 2184
|
Stifel Nicolaus Europe Limited
(Joint Broker)
Callum Stewart / Ashton
Clanfield
|
www.stifelinstitutional.com
+44 20
7710 7600
|
Tamesis Partners LLP (Joint
Broker)
Richard Greenfield
|
www.tamesispartners.com
+44 20
3882 2868
|
St Brides Partners Ltd (Financial PR
& IR)
Susie Geliher
|
www.stbridespartners.co.uk
+44 20
7236 1177
|
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.