Trident Resources Plc Completion of Koolyanobbing Royalty Acquisition (7923O)
03 Junio 2020 - 1:00AM
UK Regulatory
TIDMTRR
RNS Number : 7923O
Trident Resources Plc
03 June 2020
3 June 2020
Trident Resources Plc
("Trident" or the "Company")
Completion of Koolyanobbing Iron Ore Royalty Acquisition
Further to its announcements of 25 March 2020 and 1 May 2020,
Trident is pleased to advise that following the Company's admission
to trading on the AIM Market of the London Stock Exchange, the
Koolyanobbing Iron Ore Royalty Acquisition (as defined below) has
now completed.
On 25 March 2020, the Company announced that it had entered into
a conditional purchase agreement ("SPA") with FE Limited to acquire
a 1.5% FOB revenue royalty covering part of the producing
Koolyanobbing Iron Ore Operation in Western Australia (the
"Koolyanobbing Operation") for a staged cash consideration of A$7.0
million (the "Koolyanobbing Iron Ore Royalty Acquisition"). As
announced on 27 May 2020, the first quarterly payment which is
attributable to Trident, was A$539,310. As such, the Tranche 1
consideration payable upon completion was A$3,460,690 (being the
A$4.0 million purchase price, less the first quarter royalty
payment). This has now been paid and the second tranche of A$3.0
million is payable 12 months and one day after the closing of the
transaction.
The royalty is payable on production from the ML77/1259 tenement
which constitutes part of the Deception Pit, one of the segments in
the broader Koolyanobbing Operation. The Deception Pit is connected
to Mineral Resources' Windarling operation by a 20km haul road,
which is then connected to Koolyanobbing. Material from
Koolyanobbing is transported by rail south to Esperance Port where
it is loaded for export. The Deception pit has a JORC 2012 Reserve
of 9.3Mt at 59.9% Fe and a total Resource of 19.5Mt at 59.9% Fe as
at 30 June 2019. Trident estimates up to 75% of the Deception Pit
may contain mineralisation over which payments would be made under
the Koolyanobbing Iron Ore Royalty Acquisition.
Adam Davidson, Chief Executive Office of Trident commented:
"We are delighted to announce the completion of Trident's first
transaction as a new growth-focused diversified royalty and
streaming company. The acquisition provides Trident with an
immediately cash generative iron ore royalty at a time where iron
ore price continues to outperform other commodities and provides a
strong initial platform from which to execute on our strategy."
** Ends **
Contact details:
Trident Resources Plc www.tridentresources.co.uk
Adam Davidson +1 (757) 208-5171
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Richard Tonthat +44 020 7383 5100
/ Seamus Fricker
---------------------------
Tamesis Partners LLP (Financial www.tamesispartners.com
Adviser and Broker) +44 203 882 2868
Richard Greenfield
---------------------------
Yellow Jersey (Public Relations) www.yellowjerseypr.com
Charles Goodwin +44 203 004 9512
---------------------------
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, aiming to provide 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:
-- Constructing a royalty and streaming portfolio to broadly
mirror 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 resources-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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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