TIDMTRR
RNS Number : 8044D
Trident Royalties PLC.
01 July 2021
1 July 2021
Trident Royalties Plc
("Trident" or the "Company")
$10 million Loan Facility
Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused
mining royalty and streaming company, is pleased to announce that
it has finalised all documentation and, together with its
subsidiary companies, entered into a $10 million secured loan
facility agreement with a syndicate managed by Tribeca Investment
Partners ("Tribeca"), including the CNL Sprott Strategic Asset Fund
and Paul Smith, the Company's Chairman (the "Facility").
The Facility will support the Company's already strong balance
sheet by providing additional capital to promote continued growth
and diversification of the Company's royalty portfolio following
completion of the Thacker Pass lithium royalty transaction in
March. The Facility is in line with the strategy highlighted within
the Company's AIM Admission Document (dated 27 May 2020) to utilise
a conservative level of gearing now that the Company has reached an
appropriate size and scale.
Adam Davidson, Chief Executive Officer of Trident commented:
"The finalisation of this $10 million loan facility comes at an
important time for Trident, supporting our already healthy balance
sheet in a period where we have grown through the acquisition of
royalties, as well as having seen positive asset-level progress,
and are currently reviewing a number of royalty and streaming
opportunities under 12 active NDAs.
"Following on from our most recent, and significant, acquisition
of 60% of the Thacker Pass lithium royalty in Nevada, and against a
widely reported global macro backdrop supportive of critical
minerals, we are confident of using the increased resources now
available to us for further growth and diversification across the
portfolio."
Key Terms
The Facility is available to Trident for a period of 6 weeks
from signing and is repayable within 12 months from drawdown with a
12-month extension available, subject to certain conditions
including payment of an extension fee. Trident will pay a coupon of
10%, with interest payable quarterly. If the Facility is not drawn
within the 6-week period, a 2% break fee is payable.
In addition, on drawdown the Company will grant options to
subscribe for 3,500,000 shares in Trident to the lenders
("Options") exercisable at GBP0.5166 per share, a price
representing a 30% premium to the 30-day volume weighted average
price prior to the date of the Facility. The Options are
exercisable immediately on issue and will expire 24-months from the
date of issue.
Related Party Transaction
Among the parties to whom Tribeca has syndicated the Facility is
Paul Smith, the Company's Chairman, who has agreed to make
available US$500,000 on the same terms as the other syndicate
members, including the granting of 175,000 options on the terms
outlined above. By virtue of the quantum of his contribution, Mr
Smith's participation in the Facility falls to be treated as a
related party transaction under Rule 13 of the AIM Rules for
Companies.
The independent directors of Trident, being the directors other
than Mr Smith consider, having consulted with the Company's
nominated adviser, Grant Thornton UK LLP, that the terms of Mr
Smith's participation in the Facility are fair and reasonable
insofar as Trident's shareholders are concerned.
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 (Financial www.tamesispartners.com
Adviser and Joint Broker) +44 203 882 2868
Richard Greenfield
-----------------------------------------------------------
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:
-- Expanding on a royalty and streaming portfolio which broadly
mirrors 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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END
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