Update on Paradox Basin Royalty
21 September 2023
Trident Royalties Plc
("Trident" or the "Company")
Update on Paradox Basin Royalty
Trident Royalties Plc (AIM: TRR, OTCQB: TDTRF), the diversified mining royalty company, is pleased to note recent announcements by ASX-listed Anson Resources Ltd ("Anson", ASX:ASN) detailing positive progress on its Paradox Lithium Project ("Paradox") and Green River Lithium Project ("Green River Project"), which are both located in the Paradox Basin of south-eastern Utah, USA. On 4 September 2023, Trident announced the acquisition of a 2.50% net smelter return royalty over all of Anson's projects in the Paradox Basin, including Paradox and Green River Project1.
Paradox Lithium Project
Anson recently reported it has ramped production at its Sample Demonstration Plant at its Lithium Innovation Centre in Florida, USA, and is now continuously producing battery-grade lithium carbonate (Li2CO3) from Paradox brines for supply to potential offtake partners. The battery-grade lithium carbonate is being produced utilising the flowsheet designed by Anson's direct lithium extraction partner, Sunresin New Materials Co. Ltd.
The ramp-up of sample production is a key step in Anson's structured product supplier qualification process with potential offtake partners, as it enables them to provide samples to potential end-users. The lithium carbonate product from the sample demonstration plant will be supplied to vehicle manufacturers and their cathode active material ("CAM") partners for testing as a part of the qualification process to secure long term off-take agreements. Anson reports that discussions are ongoing with vehicle manufacturers, and they are required to provide samples for test work with their CAM providers in a typically three-stage supply qualification process.2
Green River Lithium Project
Anson also recently reported it has completed the acquisition of a strategic land package of privately owned industrial use land at its Green River Project for a purchase price of US$2.4 million.
Anson plans to utilise the new site as the location for the future lithium extraction and production facility for a proposed lithium operation at the project. Essential existing infrastructure surrounds the immediate area, which potentially offers substantial time and cost savings for the project's future development requirements. The new land package provides access to the national rail network, interstate road system, as well as gas and power infrastructure, and access to the Green River. It is also situated in close proximity to the town of Green River, providing ready access to other supporting infrastructure and potential workforce. The agreement also includes water rights, which will be added to those which have already been secured.
Design and engineering studies have commenced over the area. These include an electrical engineering study as well as a geotechnical survey generated drill program for the foundation of buildings, potable water supply and the engineering design for the extraction of water from Green River. Other applications are being prepared by Anson for the purpose of advancing the project, including a Conditional Use Permit for the development of infrastructure and the construction of the processing plant.
The Green River Project was staked in January 2023 and Anson proposes to explore and develop it in parallel with the development of the nearby Paradox project. The Green River Project is a significant strategic addition to Anson's US lithium asset portfolio. Anson plans to leverage its experience and expertise in the region to fast-track exploration and mineral delineation for the Green River Project, to be followed by planned project development.3
Adam Davidson, Chief Executive Officer of Trident commented:
"It is a great pleasure to see continued progress at Paradox as Anson moves the project towards becoming a U.S. based supplier of lithium to auto manufacturers and battery manufacturers.
"Anson's acquisition of a significant strategic land package for its Green River Project is also noteworthy. While Green River is earlier in its development lifecycle than Paradox, Anson is leveraging its experience at Paradox to fast track the project. Aside from the exciting potential to establish Anson as a major lithium producer in the western United States, progress at Green River demonstrates the optionality and upside inherent in Trident's acquisition of this royalty."
References
1: Source: Trident Royalties announcement dated 4 September 2023
( https://polaris.brighterir.com/public/trident/news/rns/story/rgz8ljw )
2: Source: Anson Resources announcement dated 15 September 2023
( https://wcsecure.weblink.com.au/pdf/ASN/02712060.pdf )
3: Source: Anson Resources announcement dated 13 September 2023
( https://wcsecure.weblink.com.au/pdf/ASN/02711031.pdf )
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.
** Ends **
Contact details:
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Trident Royalties Plc Adam Davidson / Richard Hughes |
www.tridentroyalties.com +1 (757) 208-5171 / +44 7967 589997 |
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Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Samuel Littler |
+44 020 7383 5100 |
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Liberum Capital Limited (Joint Broker) Scott Mathieson / Cara Murphy |
+44 20 3100 2184 |
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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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St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Catherine Leftley |
+44 20 7236 1177 |
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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