Last checked at 18 Oct 2023 07:00
18 October 2023
Trident Royalties Plc
("Trident" or the "Company")
Major Resource Upgrade for Paradox Basin Lithium Royalty
Trident Royalties Plc (AIM: TRR, OTCQB: TDTRF), the diversified mining royalty company, is pleased to note the recent announcement by ASX-listed Anson Resources Ltd ("Anson", ASX:ASN) outlining a 45% increase in its JORC 2012 compliant Mineral Resource at its Paradox Lithium Project ("Paradox") located in the Paradox Basin of south-eastern Utah, USA.
On 4 September 2023, Trident announced the acquisition of a 2.50% net smelter return royalty over all of Anson's projects in the Paradox Basin, including Paradox and the Green River Lithium Project1.
Highlights2
Material increase in Resource demonstrates value of Trident's royalty
· Material JORC 2012 Mineral Resource upgrade confirmed at Paradox;
o 1.504Mt of Lithium Carbonate Equivalent (LCE) and 7.61Mt of Bromine, including,
§ Indicated Resource of 366,737t of LCE and 1.91Mt of Bromine
§ Inferred Resource of 1.14Mt of LCE and 5.70Mt of Bromine
· Upgraded Mineral Resource represents:
o 45% increase in previously reported Lithium Resource, including;
§ 6% increase in Indicated Resource
§ 117% increase in Inferred Resource
· Mineral Resource upgrade confirmed after Anson successfully completes the strategic acquisition of the Green Energy Lithium Project immediately adjacent to Paradox
· The Upgraded Mineral Resource represents a further significant expansion of Anson's lithium JORC Mineral Resource inventory in the Paradox Basin
· Potential for substantial further Mineral Resource expansion via drilling of Anson's Western Strategy
Adam Davidson, Chief Executive Officer of Trident commented:
"The material increase in Resource following the acquisition of Green Energy highlights the attractiveness of the royalty model, with value add from the acquisition immediately flowing to the royalty. Anson continues to progress Paradox aggressively and we are pleased with the significant amount of activity that has occurred within the short time since we acquired the royalty. With this royalty giving us further exposure to battery metals, and in this instance direct lithium extraction, we look forward to further progress as Anson advances Paradox towards a development decision."
Figure 1. Plan shows the Mineral Resource classification for the Clastic Zone 31 horizon after resource upgrade2
References
1: Source: Trident Royalties announcement dated 4 September 2023
( https://polaris.brighterir.com/public/trident/news/rns/story/rgz8ljw )
2: Source: Anson Resources announcement dated 16 October 2023
( https://wcsecure.weblink.com.au/clients/ansonresources/headline.aspx?headlineid=61174219 )
Table 1: Paradox Lithium Project Total JORC 2012 Mineral Resource estimate, dated 16 October 2023
Category | Brine Volume(Ml3) | Brine Tonnes(Mt) | Li (ppm) | Br (ppm) | Contained ('000t) | |
LCE | Br2 | |||||
Indicated | 4,550 | 562 | 123 | 3,398 | 367 | 1,910 |
Inferred | 16,584 | 1,954 | 109 | 2,915 | 1,138 | 6,699 |
Total Resources | 21,134 | 2,516 | 112 | 3,023 | 1,504 | 7,609 |
Notes: * Lithium is converted to lithium carbonate (Li2CO3) using a conversion factor of 5.32 and boron is converted to boric acid (H3BO3) using a conversion factor of 5.72. Rounding errors may occur. No cut-off grades have been applied to the resource reporting. The model has been classified by radius around sampled wells. Indicated resources have been classified within 2 km of a sampled well and inferred resourced within 4 km of a sampled well. Estimation by inverse distance squared interpolation. JORC 2012: 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Competent Person's Statement
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal Consultant working for Mining Analyst Consulting Ltd which has been retained by Trident to provide technical support.
** Ends **
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 |
Liberum Capital Limited (Joint Broker) Scott Mathieson / Cara Murphy | www.liberum.com +44 20 3100 2184 |
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield | www.stifelinstitutional.com +44 20 7710 7600 |
Tamesis Partners LLP (Joint Broker) Richard Greenfield | 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.