TIDMTRR
RNS Number : 4247P
Trident Royalties PLC.
19 October 2021
19 October 2021
Trident Royalties Plc
("Trident" or the "Company")
Royalty Portfolio Update: Recommended Takeover Offer for Apollo
Consolidated
Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused
mining royalty and streaming company, is pleased to note
announcements(1, 2) made on the 18 October 2021 by Apollo
Consolidated Ltd. ("Apollo") and ASX listed Ramelius Resources
("Ramelius") relating to the proposed acquisition of Apollo by
Ramelius (the "Transaction").
Trident holds a 1.5% NSR gold royalty over Apollo's flagship
Lake Rebecca Gold Project ("Lake Rebecca" or the "Project"), in
Western Australia. The royalty (the "Lake Rebecca Gold Royalty" or
the "Royalty") covers the entirety of the Project and its 1.1Moz
Mineral Resource(3) .
Adam Davidson, Chief Executive Officer of Trident commented:
"Trident is pleased to note the announcement of the Transaction,
which would see the Lake Rebecca Project acquired by Ramelius, a
well capitalised, ASX listed mid-tier gold company with substantial
existing producing gold centres in Western Australia. Ramelius
views Lake Rebecca as a potential cornerstone asset and has
indicated its intent to identify a pathway to a mine life of 10
years at a run rate of at least 100,000 ounces per annum, which is
in excess of Trident's original economic assessment. Ramelius has
the in-house expertise within its established workforce to progress
Lake Rebecca towards production, as well as the requisite
operational expertise to maximise the value of the Project.
"Since Trident acquired the Royalty in September 2020, a
significant number of activities have been undertaken which have
added material value to Trident's royalty. Such activities include
upgrading of the Mineral Resource to its current 1.1Moz size, the
discovery of additional, but yet to be classified material through
numerous drilling programs, the acquisition of additional tenure to
support mine planning and now the potential acquisition of Apollo
by a well-funded mid-tier producer. Trident, via its royalty
holding, enjoys the significant value added by these activities,
with no further capital commitment.
"Trident identified Lake Rebecca as an attractive but
under-appreciated development stage project with significant
potential as part of its due diligence process. We are pleased to
note the potential acquisition of Apollo which validates the
attractiveness of Lake Rebecca, and Trident's royalty. We look
forward to completion of the Transaction and further advancement of
Lake Rebecca under Ramelius' stewardship."
Ramelius Managing Director , Mark Zeptner, said of the
offer:
"Lake Rebecca is an outstanding opportunity for Ramelius to add
a key growth asset to its portfolio of producing assets at Mount
Magnet and Edna May. The Apollo team has done an excellent job
advancing Lake Rebecca to its current stage of development and have
clearly demonstrated its potential for development into a
high-quality gold mine in a tier-one gold mining jurisdiction.
"Subject to the Offer being successful, Ramelius is looking
forward to ramping up the drilling program across the tenement
package to expand the existing resource and ultimately developing
Lake Rebecca into a cornerstone producing asset within our
portfolio. Our strategic target for the Project is to identify a
pathway to a mine life of 10 years at a run rate of at least
100,000 ounces per annum.
"We also look forward to welcoming Apollo shareholders as
Ramelius shareholders and encourage Apollo shareholders to accept
the Offer as soon as possible."
PROPOSED TRANSACTION
Apollo and Ramelius have entered into a Bid Implementation
Agreement ("BIA"), pursuant to which Ramelius will offer to acquire
all the issued ordinary shares of Apollo by way of an off-market
takeover offer. The offer, comprised of A$0.34 cash per share and
0.1375 Ramelius shares per Apollo share, represents an implied
offer price of A$0.56 per share and a 35.9% premium to Apollo's
10-day volume weighted average price.
The offer has been unanimously recommended by the Board of
Directors of Apollo, in the absence of a superior offer, who have
entered into binding agreements to accept the offer in respect of
all Apollo shares they own or control. The offer is subject to
terms and conditions standard for a transaction of this nature.
ABOUT RAMELIUS
Ramelius is an ASX listed gold producer (Ticker Code: RMS) with
a market capitalisation of A$1.32B, cash and equivalents of
A$234.0M and no debt. Ramelius operates two production centres at
Mt Magnet and Edna May which produced a total of 272koz in FY21,
with FY22 operating guidance set at 260-300koz.
Notes & References
All of the technical information in this release has been
extracted from the publicly available source documents identified
below, the reader is advised that the appropriate JORC tables and
Competent Persons Statements may be found in those documents.
1 Source: Ramelius Resources ASX announcement: Ramelius Makes
Recommended Takeover Offer for Apollo Consolidated, 18 October
2021
(
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02436827-6A1056350?access_token=83ff96335c2d45a094df02a206a39ff4
)
2 Source: Apollo Consolidated ASX announcement: Ramelius Makes
Recommended Takeover Offer for Apollo Consolidated, 18 October
2021
(
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02436827-6A1056350?access_token=83ff96335c2d45a094df02a206a39ff4
)
3 Source: Apollo Consolidated ASX announcement. Resource Update, 20 April 2021
(
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02365043-6A1029007?access_token=83ff96335c2d45a094df02a206a39ff4
)
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 www.tridentroyalties.com
Adam Davidson +1 (757) 208-5171
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Lukas Girzadas
---------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield +44 20 3882 2868
---------------------------
Shard Capital Partners LLP (Joint www.shardcapital.com
Broker) +44 20 7186 9927
Erik Woolgar / Isabella Pierre
---------------------------
St Brides Partners Ltd (Financial www.stbridespartners.co.uk
PR & IR) +44 20 7236 1177
Susie Geliher / Catherine Leftley
---------------------------
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, providing investors with exposure to a mix of
base and precious metals, bulk materials (excluding thermal coal)
and battery metals.
Key highlights of Trident's strategy include:
-- Expanding on a royalty and streaming portfolio which broadly
mirrors the commodity exposure of the global mining sector
(excluding thermal coal) 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;
-- Acquiring royalties and streams in resource-friendly
jurisdictions worldwide, while most competitors have portfolios
focused on North and South America;
-- Targeting attractive small-to-mid size transactions which are
often ignored in a sector dominated by large players;
-- 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;
-- Maintaining a low-overhead model which is capable of
supporting a larger scale business without a commensurate increase
in operating costs; and
-- 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.
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END
MSCGPGMAUUPGGWR
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