TRR.L Share News (TRR)

(Sharecast News) - Mining royalty company Trident Royalties has agreed to purchase ASX-listed New World Resources in order to acquire a net smelter return royalty on all metal production from its flagship Antler copper project.

Trident said on Wednesday that it will make a cash payment of AUD $11.0m (£5.76m) for the royalty, which includes a 0.90% NSR royalty over the current tenement package and a 0.45% NSR royalty over any ground subsequently acquired by New World within 5.0km of the project area royalty boundary.

The AIM-listed group noted that Antler was an advanced-stage, high-grade copper-zinc polymetallic deposit in a secure mining supportive jurisdiction with a JORC-compliant mineral resource estimate of 11.4m tonnes at 4.1% Cu-equivalent for approximately 467,000 tonnes of Cu-equivalent.

Trident chief executive Adam Davidson said: "At the end of last year, we indicated that the market for royalties was becoming more active as projects looked for funding outside of traditional equity and debt markets. That has proven to be the case, with Antler marking our fifth transaction this year.

"This is a highly attractive royalty. The commodity mix complements our existing portfolio, with future-facing base metals to sit alongside our lithium, precious metals, and existing base metals exposure. The location and management of the asset are both excellent and we expect the royalty to deliver significant value for Trident shareholders."

As of 1020 GMT, Trident shares were up 3.61% at 31.60p.

Reporting by Iain Gilbert at Sharecast.com