Paradox Basin Lithium Royalty
Trident Royalties (TRR) has announced the acquisition of a significant lithium brine royalty from the Paradox Basin in Utah, with lithium to be recovered using direct lithium extraction techniques.
Adam discusses the $10M acquisition, with only $1.5M in cash up front. Key highlights include:
1) This is an advanced stage project, with a definitive feasibility study published last year.
2) You can see the pathway to cashflow from a royalty holders perspective
3) This is a lithium brine project, and it’s using Direct Lithium Extraction which is environmentally friendlier and much lower cost.
“It’s hard to get good lithium royalty exposure and we are pretty excited about this one over the Paradox Basin. DLE has the potential to be disruptive and could be a methodology which takes over the lithium space.”
Sonora Lithium Royalty
Adam also commented on Friday’s announcement by the Mexican Government that the 9 lithium concessions comprising Ganfeng Lithium Company’s Sonora Project appear to have been cancelled. He made it clear that Trident doesn’t own the Sonora royalty as of today, rather Trident had effectively put down a deposit in the form of a loan.
“I suppose from where we stand” said Adam, “We’ve got an option, we are happy to ride that option and to see how this situation develops. If it doesn’t move in our direction we can call back our $2.5M and move on with nothing lost.”
Dandoko Gold Royalty
Adam also referenced the Dandoko, West Mali gold royalty purchase, which was announced on 21st August, a Tier One gold mine, the flagship project for B2Gold.
B2Gold are a muti-billion dollar gold producer who have already invested a significant amount of capital into the project.
“The fact that it’s in Mali is already factored into the price” said Adam. “Frankly if this asset was located in the US or Australia you would be paying multiples of what we paid. And from our perspective, you want some exploration exposure in your portfolio. ”
Trident Royalties (TRR)