Portfolio Update: Spring Hill Project
27 May 2022
Trident Royalties Plc
("Trident" or the "Company")
Portfolio Update: Spring Hill Project
Trident Royalties Plc (AIM:TRR), the diversified mining royalty and streaming company, is pleased to note the state government approval of TM Gold's Mining Management Plan ("MMP") for its 100% owned Spring Hill Gold Project ("Spring Hill") located in Australia's Northern Territory.
Trident owns a variable priced royalty ("Royalty") over the entirety of the Spring Hill Project as announced on 14 July 2020. The Royalty provides for A$13.30 per ounce of gold produced at Spring Hill which, at current Australian dollar gold price, represents an approximate 0.5% gross revenue royalty1.
Highlights
· Approval of the MMP represents the final approval required to commence operations at Spring Hill, the culmination of an extensive, multi-year approval process;
· Spring Hill is currently being actively advanced by TM Gold Pty Ltd, a 100%-owned subsidiary of private company PC Gold Pty Ltd ("PC Gold"). The project is located within 28km of an existing gold processing plant which has successfully processed a bulk sample from the project;
· Stage 1 production, incorporating conventional open-cut method of drilling, blasting and excavation of oxide ore, is scheduled to mine approximately 102,000 ounces of gold over an initial 13-month period3 with the Executive Chair of PC Gold noting, "Stage 1 of the project is seen as a very important steppingstone to a much longer mine life"2;
· The project is supported locally, with the Mining and Industry Minister for the Northern Territory, Nicole Manison, stating "The Spring Hill Mine will support over 30 local jobs with mining scheduled to commence later this year"2.
Adam Davidson, Chief Executive Officer and Executive Director of Trident commented:
"We are pleased to note the developments at Spring Hill which further serve to highlight the hidden value contained within Trident's royalty portfolio. With approvals in hand, PC Gold is free to focus on advancing the Project towards first production at a time of a historically strong gold price underpinned by significant macroeconomic and global uncertainty."
Details of the Spring Hill Project
The Royalty is applicable to production from the Spring Hill project, comprising 100% of production from mining license ML23812 which covers 1,035 hectares. The Royalty also encompasses any production from exploration licences EL22957 and EL28855 which surround the granted mining license. Spring Hill is located proximally to an existing gold processing plant and benefits from access to attractive infrastructure. Trident notes the MMP approved by the Northern Territory Government grants the mining of approximately 102,000 ounces of gold from the current gold plan over an initial 13-month period3.
Competent Person's Statement
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Trident to provide technical support.
References
1. Royalty rate applicable is A$13.30/oz where gold price is >A$1,500/oz, or A$5.70/oz where gold price is <=A$1,500/oz. As of 24 May 2022, AUD Gold Price is $2,618/oz
2. Source: Australian Mining, Article: New gold miner in the Territory ranks, dated 17 May 2022
( https://www.australianmining.com.au/news/new-gold-miner-in-the-territory-ranks/ )
3. Source: TM Gold, 2021 Mining Management Plan, dated 21 October 2021
( https://industry.nt.gov.au/__data/assets/pdf_file/0016/1103542/spring-hill-gold-mine-mining-management-plan.pdf )
** Ends **
Contact details:
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Trident Royalties Plc Adam Davidson / Paul Smith |
www.tridentroyalties.com +1 (757) 208-5171 / +41 79 947 1348 |
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Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Samuel Littler |
+44 020 7383 5100 |
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Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield |
+44 20 7710 7600 |
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Tamesis Partners LLP (Joint Broker) Richard Greenfield |
+44 20 3882 2868 |
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Hudson Sandler Investor Relations: John Smelt Public Relations: Charlie Jack / Harry Griffiths |
+44 207 796 4133 |
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:
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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;
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Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;
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Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
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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;
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Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
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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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