Trident Royalties PLC. Portfolio Update: Sonora Lithium Royalty (7861X)
April 28 2023 - 2:00AM
UK Regulatory
TIDMTRR
RNS Number : 7861X
Trident Royalties PLC.
28 April 2023
28 April 2023
Trident Royalties Plc
("Trident" or the "Company")
Portfolio Update: Sonora Lithium Royalty
Trident Royalties Plc (AIM:TRR, OTCQX: TDTRF), the diversified
mining royalty company, notes a recent update relating to the
Sonora lithium royalty ("Sonora Royalty").
The Alberta Court of Appeal overturned, on appeal, a judgment
which had summarily dismissed the action brought by Bacanora
Minerals Ltd. ("Bacanora") against the Estate of Ian Colin
Orr-Ewing ("Estate") on the basis that it was time barred under the
statute of limitations. This decision relates to a specific point
of law and no determination has been made in relation to the merits
of the underlying claim. The case will now be referred back to the
Court of King's Bench of Alberta to consider the merits of the
claim and they will determine the timetable for this process and
the timing for future hearings. Bacanora alleges that Mr. Orr-Ewing
obtained the Sonora Royalty either by misrepresentation or without
consideration. The Estate disputes the allegations and intends to
rigorously defend itself in the action.
Transaction Summary
On 27 January 2022, Trident announced that Sonoroy, a 50%-held
joint venture between Trident and Marmottes Capital Limited,
entered into an agreement to acquire a 3.0% Gross Revenue Royalty
(1.5% attributable to Trident) over the Sonora Lithium Project from
the Estate. In accordance with the terms of the agreement, the
long-stop date to complete the acquisition of the royalty is the
earlier of 31 January 2025, or the date which is 6 months after the
first Royalty payment.
The conditions requiring Trident to provide funding in respect
of Sonoroy to enable it to complete the acquistion remain at
Trident's discretion and includes a provision that at the time of
funding, no changes in Mexico's regulatory regime materially
affects the Sonora project and that the litigation by Bacanora is
favourably resolved for the Estate. If Trident elects to exit the
joint venture, the repayment date of an initial loan made by
Trident to Sonoroy of $2.5 million is due six months from
notification of termination of the Sale and Purchase Agreement or
Joint Venture Agreement.
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson / Richard Hughes +1 (757) 208-5171 / +44 7967
589997
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Samuel Littler
------------------------------
Stifel Nicolaus Europe Limited (Joint www.stifelinstitutional.com
Broker) +44 20 7710 7600
Callum Stewart / Ashton Clanfield
------------------------------
Liberum Capital Limited (Joint Broker) www.liberum.com
Scott Mathieson / Cara Murphy +44 20 3100 2184
------------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield +44 20 3882 2868
------------------------------
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 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;
-- 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
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