Portfolio Update: Thacker Pass Lithium Project

RNS Number : 3626T

Trident Royalties PLC.

22 July 2022

 

22 July 2022

Trident Royalties Plc

("Trident" or the "Company")

Portfolio Update: Thacker Pass Lithium Project

Trident Royalties Plc (AIM:TRR), the diversified mining royalty company, is pleased to note a recent update on the Thacker Pass lithium project ("Thacker Pass" or the "Project"), in Nevada, by the project operator, Lithium Americas Corp. ("LAC")¹. Trident holds a 60% interest in a gross revenue royalty over the entirety of the Project.

HIGHLIGHTS

· Early works construction remains on track to commence in 2022, with all permits to commence construction currently in place. An appeal of the Federal Record of Decision is ongoing with briefings scheduled to end on 11 August 2022; oral arguments and a final decision are expected to follow shortly thereafter.

· The Project Feasibility Study is also expected to be delivered in the second half of 2022, targeting total production capacity of 40,000 tonnes per annum of lithium carbonate (Phase 1) with a second stage expansion targeting total production capacity of 80,000 tonnes per annum (Phase 2).

· LAC officially opened the 30,000 square foot Lithium Technical Development Center in Reno, Nevada in an event attended by Nevada Governor, Steve Sisolak.

· The facility has been fully commissioned and is operating as planned to replicate the Thacker Pass flowsheet² from raw ore to final product, and has achieved battery-quality specifications with product samples being produced for potential customers and partners.

· Formal application was submitted to the U.S. Department of Energy in April 2022 through the Advanced Technology Vehicles Manufacturing loan programme, which LAC expect to fund the majority of the Thacker Pass capital costs.

Jonathan Evans, President and CEO of LAC, commented to LAC for the purposes of their announcement¹ :

"As we prepare to break ground on Thacker Pass, we have never lost sight of our broader responsibility in developing the largest and most advanced new source of lithium in the U.S. We hope to play a meaningful role in securing domestic supply of lithium to meet our country's electrification needs and are committed to doing so in a manner that benefits the people of Nevada, Native Americans, and the broader industry that has flourished in this state."

Adam Davidson, Chief Executive Officer of Trident, commented :

"We are delighted to see that Thacker Pass remains on track for construction to commence in 2022 and to note the success that Lithium Americas has had in achieving battery-quality samples in trial processing at the new Lithium Technical Development Center. We await the decision of the court regarding the final appeal, expected shortly following final briefings on August 11^th. The progression of Thacker Pass to construction will be a transformational event for Trident, both in exposure to battery materials and future cashflow generation."

References

1:  Source: Lithium Americas Corp. announcement dated 20 July 2022

( https://www.lithiumamericas.com/news/lithium-americas-celebrates-inauguration-of-lithium-technical-development-center-in-nevada-and-provides-thacker-pass-update )

2:  Background information: Lithium Americas Corp. Thacker Pass technical report and diagrams available at:

  ( https://www.lithiumamericas.com/usa/thacker-pass/ )

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Contact details:

Trident Royalties Plc Adam Davidson / Paul Smith	www.tridentroyalties.com [phone] / [phone]
Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Samuel Littler	www.grantthornton.co.uk [phone]
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield	www.stifelinstitutional.com [phone]
Tamesis Partners LLP (Joint Broker) Richard Greenfield	www.tamesispartners.com [phone]
Hudson Sandler Investor Relations: John Smelt Public Relations: Charlie Jack / Harry Griffiths	[e-mail] [phone]

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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