LONDON, UK: Trident Royalties Plc, a diversified mining royalty company, has announced a significant milestone with its binding royalty purchase agreement with ASX-listed New World Resources Limited (ASX: NWC).
This agreement secures a net smelter return (“NSR”) royalty on all metal production from New World’s flagship Antler Copper Project, a copper-zinc polymetallic deposit in Arizona, USA.
Key Points:
- Transaction Details: Trident will pay A$11 million (approximately US$7 million) in cash for the Royalty, which includes a 0.90% NSR royalty over the entire Antler project, covering the Antler deposit and five exploration targets, as well as a 0.45% NSR royalty over any additional ground acquired within 5km of the project boundary.
- The Asset: The Antler Copper Project is an advanced stage, high-grade copper-zinc polymetallic deposit with a JORC (2012) compliant Mineral Resource estimate of 11.4 million tonnes at 4.1% Cu-equivalent, equivalent to about 467,000 tonnes of Cu-equivalent.
- Positive Prospects: An Enhanced Scoping Study published in May 2023 indicated robust project economics, with a pre-tax NPV@7% of US$835 million, low capital expenditure of US$252 million, and an IRR of 40.2%. The mine is expected to have a 13-year life with average annual production of 32,700 tonnes of copper equivalent.
- Strategic Location: The project enjoys a secure, mining-supportive jurisdiction, with mine development and surface infrastructure situated on privately owned land controlled by New World, streamlining the permitting process.
- Future Plans: A Pre-Feasibility Study for the Antler Project is slated for Q4 2023, with pre-construction development work scheduled to begin in Q1 2025. Trident sees significant exploration potential across New World’s land holdings.
- Financial Backing: New World recently secured a A$5 million investment from a prominent US mining private equity firm. This, along with Trident’s investment, positions the project for further advancement during planned feasibility studies.
Adam Davidson, CEO of Trident, expressed enthusiasm, stating, “This is a highly attractive royalty. The commodity mix complements our existing portfolio, with future-facing base metals alongside our lithium, precious metals, and existing base metals exposure. The asset’s location and management are excellent, and we anticipate the royalty will deliver substantial value for Trident shareholders.”
Trident’s investment in the Antler Copper Project marks its fifth transaction this year, reflecting the growing trend of projects seeking funding beyond traditional equity and debt markets through royalties.