TIDMTRR
RNS Number : 0256W
Trident Royalties PLC.
17 December 2021
17 December 2021
Trident Royalties Plc
("Trident" or the "Company")
$40 million Loan Facility
Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused
mining royalty and streaming company, is pleased to announce that,
following the announcement on 13 December 2021, the Company has
signed the $40 million secured loan facility agreement with
Macquarie Bank Limited ("Macquarie"), (the "Facility").
The Facility will be used to retire the existing $10 million
secured loan facility provided by a syndicate managed by Tribeca
Investment Partners, with the balance used to complete the
acquisition of the gold offtake streams from funds managed by Orion
Resource Partners ("the Acquisition"), also announced on 13
December 2021.
Adam Davidson, Chief Executive Officer of Trident commented:
"We are extremely pleased to be working with Macquarie, a highly
respected financial institution in the natural resources sector and
completing this important step to closing the recently announced
Acquisition."
Key Terms
The Facility will be drawn on completion of the Acquisition and
will mature on 31 December 2024. Trident will pay a coupon of 7.75%
plus compounded SOFR, with interest payable quarterly. Regular
quarterly repayments of US$2.5m will commence on 30 June 2023 with
a final bullet payment on maturity.
In addition, by 31 January 2022, the Company will grant warrants
to subscribe for 14,840,517 shares in Trident to the lenders
("Warrants") exercisable at GBP0.51 per share, a price representing
a 30% premium to the 20-day volume weighted average price prior to
the date of the commitment letter.
The Warrants are exercisable immediately on issue and will
expire 36-months from the date of issue. Exercise in full of the
Warrants will bring US$10 million of cash into the Company which
can be used to part fund repayment of the loan. As the issue of the
Warrants will exceed the Directors current share authorities, the
issue of the warrants is conditional upon shareholders granting the
directors the authority to issue and allot, free of pre-emption
rights, the Warrants. Resolutions to approve this have been
proposed at the General Meeting which has been convened for 10
January 2022. If the issue of the Warrants is not approved by
shareholders, Trident would, absent agreeing a waiver of the same
by 31 January 2022, be in breach of the terms of the Facility.
Closing and drawdown of the Facility are expected by mid-January
and release of the amounts to the borrower under the Facility is
subject to the execution of the sale and purchase documentation for
the Acquisition, the successful completion of the firm placing
element of the Placing announced on 14 December 2021, the execution
of the definitive documentation relating to the Debt Facility and
related security, and other conditions customary for a transaction
of this nature.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
** 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
-----------------------------------------------------------
Tamesis Partners LLP (Financial www.tamesispartners.com
Adviser and Joint Broker) +44 203 882 2868
Richard Greenfield
-----------------------------------------------------------
Shard Capital Partners LLP (Joint www.shardcapital.com
Broker) +44 207 186 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.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFFSSAWEFSEIE
(END) Dow Jones Newswires
December 17, 2021 03:59 ET (08:59 GMT)
Trident Royalties (LSE:TRR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trident Royalties (LSE:TRR)
Historical Stock Chart
From Jul 2023 to Jul 2024