("Trident" or the "Company")
Acquisition of Advanced Stage Lithium Royalty
The Royalty is a 2.50% net smelter return ("NSR") royalty tied to Anson's ownership of the projects. Should Anson sell a property within the
HIGHLIGHTS
Multi-project coverage, diversifying Trident's lithium extraction exposure
· The Royalty covers all projects owned by Anson within the
· Anson released a Definitive Feasibility Study ("DFS") for Paradox in
· At spot prices of approximately
· Anson further highlighted that the Phase 1 economics are based solely on a JORC 2012 compliant Indicated Mineral Resource estimate ("MRE") of 239,000 tonnes LCE.2 A subsequent MRE update significantly upgraded the Indicated resource tonnage to 346,109 tonnes LCE3 and the DFS economics are expected to be updated based on future MRE upgrades.1
· Additionally, Phase 2 development at Paradox is expected to comprise a further substantial increase in lithium production capacity, together with new bromine production capacity. 1
· Anson is well-funded to continue rapidly progressing Paradox, with
·
In consideration, Trident shall pay up to
·
· Upon (i) commencement of commercial production by Anson at Paradox, and (ii) receipt of the first payment under the Royalty, Trident shall pay up to
· On the second anniversary of the First Contingent Payment, Trident shall pay up to
"We are delighted to announce the acquisition of this royalty over the
Paradox is an advanced stage development project located in the
Figure 1. Map showing the location of
On
Anson is rapidly advancing Paradox towards production. Worley, a global engineering firm, has been appointed and has commenced the FEED study for the proposed lithium carbonate processing plant, which is expected to be completed in Q4 2023. Anson's chosen DLE process, developed by Sunresin New Materials Co. Ltd ("Sunresin"), will be incorporated into the design and engineering work, and the FEED team will work closely with Sunresin and its independently appointed design and engineering consultants in the delivery of the FEED Study. Sunresin is the process package owner and technology provider for the proposed DLE plant at Paradox, processing raw brine into sellable product, and will be responsible for the design and engineering work to applicable
Anson is in process of developing a suppliers list of components and equipment required for the production plant. It is focused on sourcing as much of the required equipment and components from
The Royalty
The Royalty is a 2.50% net smelter return royalty that covers any projects owned by Anson in the
Figure 2: Location of the Paradox Brine Site1
The Royalty is a perpetual royalty tied to Anson's ownership of the underlying projects, such that if Anson were to sell a project, the royalty would no longer apply to the asset. In this event, Trident would be entitled to receive 2.00% of the net sales proceeds upon the sale of a project within the
The Transaction
Pursuant to the sale and purchase agreement, Trident shall pay up to
Upon (i) the declaration of commercial production by Anson at Paradox, and (ii) receipt of the first payment under the Royalty, Trident shall pay up to
On the second anniversary of the First Contingent Payment, Trident shall pay
References
1: Source: Anson Press Release - Paradox Lithium Project DFS confirms outstanding economics and ESG credentials for Phase 1
(https://wcsecure.weblink.com.au/pdf/ASN/02565661.pdf)
2: Source: Anson Media Articles - Anson Resources assessing debt and equity funding for
( https://www.ansonresources.com/media/ )
Article - Anson Resources assessing debt and equity funding for
3: Source: Anson Press Release - Anson Reports Major Resource Upgrade at
( https://wcsecure.weblink.com.au/pdf/ASN/02555773.pdf )
4: Source: Anson Press Release - Anson Delivers 1Mt LCE Mineral Resource at
( https://wcsecure.weblink.com.au/pdf/ASN/02592902.pdf )
Table 1: Paradox Lithium Project Total JORC 2012 Mineral Resource estimate, dated
Category |
Brine Volume |
Brine Tonnes |
Li (ppm) |
Br (ppm) |
Contained ('000t) * |
|
LCE |
Br2 |
|||||
Indicated |
4,350 |
530 |
123 |
3,474 |
346 |
1,840 |
Inferred |
8,108 |
1,038 |
125 |
3,308 |
692 |
3,434 |
Total Resources |
12,458 |
1,568 |
124 |
3,364 |
1,038 |
5,275 |
Notes: * Lithium is converted to lithium carbonate (Li2CO3) using a conversion factor of 5.32 and boron is converted to boric acid (H3BO3) using a conversion factor of 5.72. Rounding errors may occur. No cut-off grades have been applied to the resource reporting. The model has been classified by radius around sampled wells. Indicated resources have been classified within 2 km of a sampled well and inferred resourced within 4 km of a sampled well. Estimation by inverse distance squared interpolation. JORC 2012: 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
5: Source: Anson Financial Report-
( https://wcsecure.weblink.com.au/pdf/ASN/02691735.pdf )
Table 2: Exploration Target estimation for the combined
Exploration Target |
Density |
Brine (Mt) |
Li (ppm) |
"Li2CO3 |
Exploration Target |
Density |
Minimum |
1.27 |
310 |
108 |
1,294 |
2,000 |
4,811 |
Maximum |
1.27 |
350 |
200 |
3,096 |
3,000 |
8,734 |
Notes: The Exploration Target figure is conceptual in nature as there has been insufficient exploration undertaken on the project to define a mineral resource for the Clastic Zones and Mississippian units. It is uncertain that future exploration will result in a mineral resource.
6: Source: Anson Press Release - Exploration Target Confirmed at
( https://wcsecure.weblink.com.au/pdf/ASN/02631599.pdf )
Table 3: Exploration Target estimation for the
Lithological Unit |
Range |
Brine Tonnes |
|
Br Grade |
Li (t) |
Li₂O₃ |
Br (t) |
Mississippian & Clastic Zones |
Minimum |
2,000 |
100 |
2,000 |
200,000 |
1,064,600 |
3,200,000 |
Maximum |
2,600 |
150 |
3,000 |
390,000 |
2,075,900 |
7,800,000 |
Notes: The Exploration Target figure is conceptual in nature as there has been insufficient exploration undertaken on the Project to define a mineral resource for the Leadville units. It is uncertain that future exploration will result in a mineral resource.
7: Source: Anson Press Release - Anson Advances Lithium Plant Front End Engineering & Design Study,
( https://wcsecure.weblink.com.au/pdf/ASN/02669416.pdf )
Competent Person's Statement
The technical information contained in this disclosure has been read and approved by Mr
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of
** Ends **
Contact details:
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+1 (757) 208-5171 / +44 7967 589997 |
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+44 020 7383 5100 |
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+44 20 3100 2184 |
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+44 20 7710 7600 |
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+44 20 3882 2868 |
Susie Geliher / |
+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
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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.