(Alliance News) - Trident Royalties PLC on Monday said that it has signed a previously-announced agreement for a revolving credit facility with BMO Capital Markets Ltd and CIBC.
Trident is a mining royalty and streaming-focused company, providing investment exposure to base, battery, precious and bulk metals.
The deal is for a USD40 million revolving credit facility, with an option to increase the facility to USD60 million via an accordion feature. It has a three-year term, with a one-year extension option.
Trident said the proceeds will be applied to retire the existing USD40 million secured debt facility provided by Macquarie Bank Ltd.
"The implementation of this new revolving debt facility will reduce our cost of capital, and represents a critical dimension of our broader strategy for Trident. This refinancing introduces a flexible lower-cost debt facility...greatly increases our ability to deploy capital and support future acquisitions alongside our strong balance sheet," said Chief Executive Officer Adam Davidson.
He added: "We are pleased that both BMO and CIBC, who are leading financiers to the sector, share in our long term vision for building a substantial diversified mining royalty business."
Trident Royalties shares were trading 1.5% higher at 34.75 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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Trident Royalties (TRR)