The main news to discuss was the announcement, acquisition of a 1.5% NSR over a developing million-ounce gold project in Western Australia. The companies biggest transaction to date.
They have made five acquisitions over 8 royalties in less than 4 months of being listed on AIM and still have a fair bit of cash to spend and a lot of potential deals in the pipeline.
Adam Davidson, Chief Executive Officer and Executive Director of Trident commented:
“We are delighted to announce the acquisition of the Royalty over Lake Rebecca which will provide our shareholders with precious metals exposure from a significant and growing asset in the world’s top mining jurisdiction. Existing, uncapped gold royalties over attractive, substantial gold projects being developed by credible operators are incredibly scarce globally, let alone in a jurisdiction such as Australia which more traditionally utilises equity and debt markets for project finance. The Transaction reinforces the benefits of Trident’s global reach and network in sourcing attractive royalty opportunities.
“The Royalty will become a cornerstone asset for Trident and is anticipated to provide material and long-term revenue commencing in 2023 with significant upside to both scale and mine life. At this early stage, Trident believes that Lake Rebecca is on track to support a circa 100koz/a operation, located in a desirable jurisdiction being supported by gold prices at close to all-time highs. Acquiring attractive development stage royalties with a clear pathway to production has been proven to deliver value to shareholders, with many major and mid-tier royalty companies built on acquisitions such as this.
“More broadly, we are pleased to announce our fifth transaction in less than four months of being listed on AIM. We’re encouraged by the attractive opportunities available to Trident – lending credence to our strategy of identifying and acquiring royalties outside the scope of the currently listed royalty peers, which have a predominate focus on precious metals in North America. I see this acquisition as a major step forward in our progress toward becoming the pre-eminent, growth-focused diversified mining royalty and streaming company.”
A compelling gold project rapidly progressing towards development
· Lake Rebecca is a high-quality resource stage asset which shows potential for fast-track development within a world-class mining jurisdiction;
· Apollo (A$83 million Market Cap.) is well funded to progress development with A$21.5M cash (as of 8 July 2020), following a recent successful fundraise and divestment of a non-core asset;
· 1.5% Net Smelter Royalty over exploration licence E28/1610 which is currently pending conversion to a mining licence (M 28/400, application date 2 December 2019);
· The royalty covers the entirety of the Cleo, Duke, Duchess and Rebecca deposits, collectively referred to as the “Lake Rebecca Gold Project”;
· Apollo is aggressively pursuing the development of Lake Rebecca following the publication of a conservative open-pit shell constrained 1.035 million ounce JORC (2012) compliant maiden Mineral Resource Estimate¹ (“MRE”) in February 2020 (Indicated + Inferred resource of 27.1Mt @ 1.2g/t Au, with 0.5g/t Au cut-off & A$2,250/oz gold price).
· Significant Resource upgrade and expansion potential demonstrated by drill intersections subsequent to the MRE with mineralisation shown to be open at depth and along strike of the current modelled pit-shell.
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