LONDON: Trident Royalties’ wholly owned subsidiary TRR Services Australia Pty Ltd has entered into a binding agreement with Talga Resources Limited to acquire a package of existing gold royalties covering four projects located in the prospective Pilbara and Yilgarn regions of Western Australia, Australia.
The Royalty Package is being acquired for a total consideration of A$800,000 (approximately US$575,000) comprised of A$250,000 in cash and A$550,000 in new ordinary shares in Trident.
The Royalty Package includes assets operated by established exploration companies Novo Resources Corporation for the Talga Talga Project and Calidus Resources Limited for the Warrawoona Project. The Mosquito Creek Project and the Bullfinch Project are operated by Nimble Resources Pty Ltd and Torque Metals Ltd respectively.
The royalties are over currently active projects located upon the geologically highly prospective and gold endowed Pilbara and Yilgarn cratons in Western Australia.
Completion of the transaction is conditional on approval by Australia’s Foreign Investment Review Board by 31 March 2021, or such later date as the parties may agree. If Completion does not occur by this date, then the Transaction will not proceed.
Adam Davidson, Chief Executive Officer and Executive Director of Trident commented: “We are delighted to announce the acquisition of the Royalty Package which provides precious metals exposure in the world’s top mining jurisdiction. In particular, we are excited to follow the progress of Novo Resources and Calidus Resources as they advance their respective projects. The Royalty Package adds further depth and breadth to our growing portfolio and will provide our investors with exposure to a package of attractive underlying assets, located in a desirable jurisdiction being supported by gold prices at close to all-time highs.
“The acquisition further contributes to Trident’s strategy of constructing a portfolio of royalties and streams to broadly mirror the global mining sector, with the transaction structured such that it preserves Trident’s cash for future acquisitions, facilitating the further build-out of critical mass in the portfolio. In addition, Trident is pleased to welcome Talga as a new shareholder on Completion.
“More broadly, we are very pleased to announce our fourth transaction in less than three months of being listed on AIM. We’re encouraged by the attractive opportunities available to Trident and anticipate additional transactions in 2020 as we continue our progress toward becoming the pre-eminent, growth-focused diversified mining royalty and streaming company.”