LONDON: Deterra Global Holdings, a direct wholly owned subsidiary of Deterra Royalties Limited has reached agreement on the terms and conditions of a recommended all-cash offer to acquire Trident Royalties Plc at the rate of 49 pence/share in cash.

The proposed transaction will be implemented by way of a court-sanctioned scheme of arrangement. The cash consideration values Trident’s entire issued and to be issued share capital at approximately £144 million.

Trident holds an attractive portfolio of royalties that would offer Deterra geographical diversification and commodity exposure to battery and precious metals.

Trident’s Thacker Pass lithium asset aligns squarely with Deterra’s target investment criteria. Trident’s other assets, including its La Preciosa Silver royalty and Mimbula copper royalty, will assist Deterra in its diversification efforts.

Deterra Royalties Limited is based in Perth, Australia and is listed on the Australian Securities Exchange (ASX code: DRR) with a market capitalisation of approximately A$2.4 billion as at the Latest Practicable Date. In the financial year ended 30 June 2023, Deterra reported total revenue of A$229 million and underlying EBITDA of A$219 million. Deterra was formed as a separate listed entity via an in-specie distribution (demerger) from Iluka Resources Limited in November 2020 and is a constituent of the S&P/ASX 200 Index.

Deterra’s principal activity is the management and growth of a portfolio of royalty assets across a range of commodities, primarily focused on bulk, base and battery metals. Its key royalty investment activities involve acquisition of royalties from third parties and providing finance to resource companies in return for royalties.

Commenting on the Offer, Julian Andrews, Managing Director of Deterra, said: “I believe the Offer provides an attractive outcome for shareholders of both Deterra and Trident. It is a positive step in the execution of Deterra’s growth strategy by adding quality assets to our current portfolio. For Trident Shareholders it offers the certainty of a cash return at a significant premium and access to liquidity not available in recent trading. We welcome the support for the Offer of both the Trident Board and key shareholders representing 28.7 per cent of Trident’s issued capital.”

Commenting on the Offer, Peter Bacchus, Non-Executive Chair of Trident, said: “Since its inception in June 2020, Trident has built shareholder value through the acquisition of high quality royalties and now holds a diversified portfolio of 21 assets, including the flagship Thacker Pass lithium royalty. While the Trident Board remains confident in Trident’s ability to succeed as an independent business and to continue delivering strong results and growth in the future, the Offer from Deterra offers Trident Shareholders both liquidity and an immediate cash premium. As such, it presents an opportunity for our shareholders to accelerate and de-risk the recognition of Trident’s potential future value creation, and realise a certain cash exit for their investment.”

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