LONDON, UK: Trident Royalties Plc, a diversified mining royalty company, has agreed to buy a 50% stake in a 2% net smelter royalty over the Dandoko Gold Project in Mali, owned by B2Gold Corporation Limited, a senior gold producer.
The royalty covers an attractive exploration area, with potential for near-term production, near B2Gold’s Fekola Mill. B2Gold has completed a study confirming the feasibility of trucking saprolite material from Dandoko to Fekola, and is also advancing a plan for a new standalone processing facility at Anaconda, another nearby project. B2Gold has spent US$6.6 million on exploration at Dandoko in the first half of 2023.
Trident will pay US$3 million in cash and US$750,000 in shares to the sellers, plus US$1.25 million in cash on first royalty receipt and another US$1.25 million in cash on receipt of payment on 500,000 ounces gold sold from the royalty area. The transaction is subject to consent from B2Gold.
Adam Davidson, CEO of Trident, said: “The acquisition of the Dandoko Royalty again demonstrates Trident’s ability to identify undervalued royalties covering high-quality assets and delivering significant shareholder value. Dandoko is a highly attractive royalty on an asset operated by a senior producer, close to existing processing infrastructure, with a demonstrated pathway to production and significant exploration upside.”
Paul Smith appointed non-executive chair of Trident Royalties Plc