Last checked at 4 Sep 2023 07:00
4 September 2023
Trident Royalties Plc
("Trident" or the "Company")
Completion of Dandoko Royalty Acquisition,
Issue of Consideration Shares
and
Total Voting Rights
Trident Royalties Plc (AIM: TRR, OTCQB: TDTRF), is pleased to announce that all pre-conditions to the Dandoko Royalty acquisition in the binding acquisition agreement ("Agreement") have now been satisfied and completion has occurred.
On 21 August 2023, the Company announced that it had entered into a binding agreement to acquire a 50% interest in a 2% net smelter royalty (the "Royalty") over the Dandoko Gold Project permit area in western Mali owned by B2Gold Corporation Limited. The Royalty was acquired for total consideration of up to US$6.25 million1.
Pursuant to the Agreement, Trident has paid US$3.0 million in cash and will pay US$0.75 million in ordinary shares (together, the "Upfront Payment"), which will be satisfied by the issue of 1,425,210 new ordinary shares of 1p each in Trident ("Consideration Shares") at 41.9213p per Ordinary Share.
In addition to the Upfront Payment, in consideration of the acquisition, Trident shall pay:
• US$1.25 million in cash on first royalty receipt from the royalty area, and
• US$1.25 million in cash on receipt of payment on 500,000 ounces gold sold from the royalty area.
Settlement and Dealings
Application has been made to the London Stock Exchange Plc for admission to trading on the AIM Market of the 1,425,210 Consideration Shares, which rank pari passu with the Company's existing issued Ordinary Shares ("Admission"). Dealings on AIM are expected to commence at 8:00am on or around 5 September 2023.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), following Admission, Trident will have 292,730,176 ordinary Shares of 1p each in the capital of the Company in issue with voting rights attached. Trident does not hold any shares in treasury. This figure of 292,730,176 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the DTRs.
Adam Davidson, Chief Executive Officer of Trident commented:
"The Dandoko Gold Royalty is an important addition to our portfolio as the asset has the potential to provide near-term cashflow to Trident. B2Gold is a senior producer with invaluable operational experience with a long operating history in Mali. The Fekola mine is a cornerstone asset for B2Gold and is expected to produce approximately 600,000 ounces in 2023 at cash operating costs of between $565 and $625 an ounce. Trident considers that significant exploration upside exists at Dandoko, with B2Gold currently deploying material capital towards exploration of the area. We remain focussed on delivering value accretive deals which broaden and diversify our portfolio to promote long-term growth."
References
1: Source: Trident Royalties announcement dated 21 August 2023
( https://www.londonstockexchange.com/news-article/TRR/acquisition-of-major-gold-exploration-royalty/16090618 )
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Contact details:
Trident Royalties Plc Adam Davidson / Richard Hughes | www.tridentroyalties.com +1 (757) 208-5171 / +44 7967 589997 |
Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Samuel Littler | www.grantthornton.co.uk +44 020 7383 5100 |
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield | www.stifelinstitutional.com +44 20 7710 7600 |
Liberum Capital Limited (Joint Broker) Scott Mathieson / Cara Murphy | www.liberum.com +44 20 3100 2184 |
Tamesis Partners LLP (Joint Broker) Richard Greenfield / Charlie Bendon | www.tamesispartners.com +44 20 3882 2868 |
St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Catherine Leftley | www.stbridespartners.co.uk +44 20 7236 1177 |
About Trident
Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base battery, precious, and bulk metals.
Key highlights of Trident's strategy include:
· | Building upon a royalty and streaming portfolio which broadly mirrors the commodity exposure of the global mining sector (excluding fossil fuels) 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;
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· | Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;
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· | Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
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· | 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;
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· | Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
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· | 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.
Forward-looking Statements
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.
Third Party Information
As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.