TIDMTRR
RNS Number : 5631B
Trident Royalties PLC.
11 June 2021
11 June 2021
Trident Royalties Plc
("Trident" or the "Company")
Significant Progress for Mimbula Copper Royalty
Trident Royalties Plc (AIM: TRR, FSX: 5KV), is pleased to note a
significant development relating to its Mimbula Copper Royalty and
the project operator, Moxico Resources Plc ("Moxico").
HIGHLIGHTS
-- Moxico recently completed a US$73 million equity financing,
the proceeds of which will be used to fast track the development of
a standalone processing operation at the Mimbula copper mine in
Zambia ("Mimbula").
-- Copper production to date has been from the processing of ore
from the Mimbula surface stockpiles via toll treatment at the
nearby KCM Tailings Leach Plant.
-- Moxico intends to significantly increase production by
commencing construction of a self-operated solvent extraction and
electrowinning processing facility to produce copper at an
anticipated annual run-rate of 30,000 tonnes by late-2022.
-- The early cash generated from the current toll treatment
operation has allowed Moxico to commence preparatory activities for
mining of the Mimbula Pit 2, including dewatering and blasting.
Early site works have also commenced for the heap leach pads and
plant area with over 350 Zambians currently working on the
project.
-- Mimbula has JORC (2012) compliant Measured and Indicated
Resources(1) of 69.8Mt grading 0.96% total copper ("TCu") for
approximately 668,000 tonnes of contained copper and additional
Inferred Resources of 14.2Mt grading 0.92% TCu for approximately
130,000 tonnes of contained copper as of August 2019. In addition,
Mimbula has a non-compliant resource on the Zuka licence of 9.7Mt
grading 1.14% TCu for 110,600 tonnes of contained copper.
-- The financing underscores the robustness of the Mimbula
copper mine, which is set to deliver a material increase in
production against the backdrop of an exceptionally strong global
market for base metals.
-- The financing further highlights a key attribute of royalties
as financial instruments; specifically, that Trident benefits from
the continued funding and advancement of the underlying projects
over which it holds royalties without exposure to equity
dilution.
THE MIMBULA COPPER ROYALTY
The Mimbula Copper Royalty is a Gross Revenue Royalty ("GRR")
which was acquired on 29 June 2020(2) for a total consideration of
US$5 million. The GRR rate is 1.25%, decreasing to 0.3% upon US$5
million being paid on the royalty, with a subsequent decrease to
0.2% once the royalty has been paid on a total of 575,000 tonnes of
copper.
In addition, the GRR is subject to a Minimum Payment Schedule in
which the higher of the minimum amount, or the Gross Revenue
Royalty amount, are due; specifically:
-- Minimum payments of US$375,000 per quarter in 2021;
-- Minimum payments of US$500,000 per quarter in 2022; and
-- Minimum payments of US$750,000 in each of the first two quarters of 2023.
To date, Trident has received US$453,707 in royalty
payments.
Adam Davidson, Chief Executive Officer of Trident commented:
"We are incredibly pleased to see such a significant development
for a key asset within Trident's royalty portfolio. The financing
conducted by Moxico to materially expand copper production at the
Mimbula copper mine underscores the value of acquiring royalties
over quality assets being advanced by experienced management teams.
The Mimbula Copper Royalty provides Trident's investors with
long-life copper exposure - a key base and battery metal - from an
operating asset with further upside potential located in a prolific
copper district."
References
(1) Moxico Resource Plc https://www.moxicoresources.com/
(2) Trident announcement dated 29 June 2020
https://polaris.brighterir.com/public/trident/news/rns/story/r73y4gx
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.
** 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 www.shardcapital.com
Broker) +44 207 186 9927
Erik Woolgar / Isabella Pierre
----------------------------------------------------------
St Brides Partners Ltd (Financial www.stbridespartners.co.uk
PR & 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.
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
has relied 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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