Near-Term Producing Gold Royalty31 Aug 2021 15:03
TRR Acquisition of Near-Term Producing 1.5% Gold Royalty for $2.5 Million. A compelling asset targeting commencement of Stage 1 production in 2021. Seduli Sutter Operations Corporation ("Seduli") to acquire a Net Smelter Return ("NSR") royalty (the "Royalty") over production from the Lincoln Gold Mine ("Lincoln", or the "Project"), located in California, USA.Lincoln is situated at the centre of the California "Mother Lode", which has historically produced approximately 13.6Moz of gold.
Lincoln is a high-grade gold deposit with an existing NI 43-101 Mineral Resource Estimate of over 286,000 gold ounces at an average grade of 9.3 grams per metric tonne3.
compelling asset targeting commencement of Stage 1 production in 2021
A near term cash-generative royalty over a low-cost, high-grade asset which plans to commence Stage 1 production of 220 tonnes-per-day in 2021, targeting approximately 20,000+ ounces of gold per year1.
The Project is permitted for Stage 2 production of up to 1,000 tonnes-per-day (80,000+ ounces per year), which is anticipated to commence, subject to funding, immediately following successful completion of Stage 1.
Exploration potential is open at depth, with Lincoln having had no drilling below 150m from surface, while historic mines immediately along strike of Lincoln reached 500m to 1,800m below surface.
The NSR royalty rate will be 1.50%, decreasing to 0.75% upon US$3 million being paid on the Royalty. By then TRR will have had quarterly payments on top of the $3 million. leaving TRR with a free ride Royalty paying 0.75% on potentially 80000 + oz per year gold mine in California USA. This is a really good deal for all stakeholders including TRR investors .IMO only & DYOR.
Post-transaction, Trident has an unaudited cash balance of over US$15.0 million to deploy for future transactions and general working capital purposes, and currently has seven active NDAs, with negotiations for potential transactions over two producing royalties under exclusivity.
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