LONDON, UK: Trident Royalties Plc, the diversified mining royalty company, has announced that it has agreed to buy a 2.50% net smelter return royalty over several lithium projects owned by Anson Resources Ltd. in the Paradox Basin in Utah, USA.
The royalty covers Anson’s flagship Paradox Lithium Project, which is an advanced stage lithium brine project that uses direct lithium extraction technology.
The Paradox Lithium Project has a definitive feasibility study that outlines a phase 1 operation producing 13,074 tonnes per annum of lithium carbonate for the first 10 years of a 23-year operation. The project has significant resource expansion potential, with an exploration target of up to 3.1 million tonnes of lithium carbonate equivalent.
Anson is well-funded to progress the project, with A$38.6 million in cash-on-hand and a front-end engineering and design study expected to be completed in Q4 2023.
Trident will pay up to US$10 million for the royalty in three tranches, with a modest initial cash outlay of US$1.5 million on closing. The remaining payments will be contingent on Anson achieving commercial production and certain milestones.
Adam Davidson, Chief Executive Officer of Trident, said: “We are delighted to announce the acquisition of this royalty over the Paradox Lithium Project. For a modest initial cash outlay, we have secured exposure for shareholders to a well funded, highly attractive project with a pathway to cash generation and significant growth potential. The Paradox project reinforces our strong position in battery materials, and introduces exposure to direct lithium extraction, which could play a significant role in future lithium supply. The acquisition again demonstrates Trident’s ability to source and execute attractive transactions in a competitive market.”