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Trident Royalties brings Orion onto share register with Peru deal

  • Aim-listed mining royalty specialist
  • Long pipeline of potential targets
  • GBP16mln raised in IPO

What it does

In recent months Trident has completed the cancellation of its main board listing, its re-listing on AIM, a GBP16mln 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.

The company said the acquisition is being made directly for two of the royalties and the via the purchase of Tiomin Peru a Peruvian company which owns the third.

Pukaqaqa is majority-owned and operated by NYSE and TSX-listed Nexa Resources, an established South American mid-tier miner.

The proposed acquisition is Trident’s first all-equity transaction, demonstrating an ability to continue to build the portfolio while preserving balance sheet cash.

On completion, Orion – a global alternative investment management firm with approximately US$6.2bn under management as of March 31, 2020 – will become a 6.1% shareholder in Trident.

What the boss says: Alan Davidson

“We are very pleased to announce this all-share transaction with Orion.

“The royalties cover a large-scale asset which is being actively advanced by an established regional operator that, once in production, will generate a significant revenue stream for nearly two decades based on the most recent technical study.

“On the current resource, at a processing rate of 30,000 tonnes-per-day we believe Pukaqaqa has the potential to produce around 35,000 tonnes of copper per year, along with potential molybdenum, gold, and silver credits.”


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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