TIDMTRR
RNS Number : 8030Z
Trident Royalties PLC
18 May 2023
18 May 2023
Trident Royalties Plc
("Trident" or the "Company")
Portfolio Update: Thacker Pass Lithium Royalty
Trident Royalties Plc (AIM: TRR, OTCQX: TDTRF), the diversified
mining royalty company, is pleased to note recent updates on the
Thacker Pass lithium project ("Thacker Pass" or the "Project"), in
Nevada, by the Project operator, Lithium Americas Corp. ("LAC") and
by the United States Department of the Interior ("US DOI").
LAC Update
LAC has announced early works at Thacker Pass are progressing,
including water pipelines, construction ponds, site fencing and
access roads. Major earthworks are expected to commence in H2 2023
and support the target to commence production in the second half of
2026. LAC has cited a construction budget of US$125 million through
Q3 2023 with additional capital spend expected following completion
of the U.S. Department of Energy ("DOE") Advanced Technology
Vehicles Manufacturing Loan Program ("ATVM Loan Program") process.
The DOE ATVM Loan Program is targeted to fund up to 75% of the
total capital costs for construction of Phase 1 at Thacker Pass.
(1)
Trident holds a 60% interest in a gross revenue royalty over the
entirety of Thacker Pass. Assuming LAC exercises the partial
royalty buy-back (US$13.2 million attributable to Trident), then
Trident will retain the equivalent of a (net) 1.05% gross revenue
royalty.
US DOI Update
On 16 May 2023, the US DOI announced completion of the
Court-remanded analysis for the Thacker Pass mine approval in
Nevada, consistent with a Solicitor's Opinion ("Opinion") published
that day. The Opinion outlines the approaches that applicants may
take to site waste rock and tailings facilities on federal lands
under the General Mining Act of 1872 (Mining Law) to enhance
permitting certainty and consistency for mining operators. The
Opinion confirms that the Bureau of Land Management ("BLM") is not
required to subject every claim without evidence of discovery in a
proposed plan of operations to a detailed and independent
examination of the relevant mineral content, consistent with
longstanding practice.
In February 2023, the District Court for the District of Nevada
largely upheld the approval of the Thacker Lithium Mine in Nevada,
while remanding to the BLM an analysis of mineralization on the
claims being used for waste rock and tailings. The BLM has updated
the record to reflect evidence of mineralization on nearly all of
the claims underlying the waste and tailings sites. (2)
Adam Davidson, Chief Executive Officer of Trident commented:
"It is encouraging to see tangible progress being made by the US
Government to provide permitting clarity for mine developers, and
the references to Thacker Pass reinforce its strategic importance
to the United States. The BLM record update, which the US DOI
confirms is consistent with the new Opinion, is a key deliverable
following the February 2023 ruling and provides even further
clarity on Thacker Pass' pathway to production, for which LAC is
targeting H2 2026."
References
1 Source: Lithium Americas Corp announcement dated 15 May 2023:
(
https://www.lithiumamericas.com/_resources/news/nr_20230515b.pdf
)
2 Source: US DOI Pres Release, 16 May 2023 ( https://www.doi.gov/pressreleases/interior-department-announces-updated-guidance-mining-claims )
** 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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