Trident Royalties adds lithium to mix with Thacker Pass deal

  • Aim-listed mining royalty specialist 
  • Moved into lithium through second deal with Orion
  • £20mln raised to fund Thacker Pass deal

What it does

In recent months Trident has completed the cancellation of its main board listing, its re-listing on AIM, a £16mln fundraise, and the acquisition of a copper royalty over the Mimbula mine, which is currently ramping up production.

Subsequent to the listing, Trident has executed on the acquisition of the Spring Hill royalty, a strategically located development-stage gold asset in Australia.

Trident said it currently has many active non-disclosure agreements under which it is reviewing a range of opportunities, including in base and precious metals, as well as battery minerals.

 The pipeline includes assets located in the Americas, Europe, Africa, and Australia.

How it’s doing

Trident has been busy since it listed and in December acquired a portfolio of three existing royalties over the Pukaqaqa Copper Project in Peru for a total consideration of approximately US$3mln.

In March, Trident Royalties acquired a 60% stake in an existing royalty stream from the Thacker Pass project, the largest lithium reserve in the US.

Orion Finance is selling the royalty for US$28mln, which Trident will meet through cash of US$26mln and US$2mln in shares.

The cash element is being largely funded by a placing and subscription of Trident shares at 34p per share to raise £20.2mln with a retail offer through to bring in up to a further £0.5mln.

 Alan Davidson. Trident’s chief executive, said the placing was oversubscribed and completed without a discount to the market price, underlining the strength of Trident’s investment case.

Thacker Pass is operated by Lithium Americas and the miner has a partial buyback option over the royalty that Trident expects to be exercised and will mean it receives US$13.2mln.

What the boss says: Alan Davidson

“Thacker Pass, which will become a cornerstone asset for Trident, will bring the addition of lithium, a key battery metal, to our portfolio alongside existing exposure to iron ore, copper and gold. 

“This will provide an important new dimension to Trident as we continue to build a portfolio of royalties to broadly mirror the commodity exposure of the global mining sector, with battery metals representing an increasingly significant component of the industry.”


Inflexion points

  • 15 potential royalties in the pipeline
  • Two royalties generating cash
  • Spring Hill exploration boosts resource

What the analyst says 

Click here to read Ryan Long’s initiation report



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