Trident Royalties. - Warrawoona Gold Project, On-Track to Production
Trident Royalties Plc
Royalty Portfolio Update: Warrawoona Gold Project,
On-Track to Production
Trident Royalties Plc ("Trident" or the "Company") (AIM:TRR, FSX:5KV), the growth-focused mining royalty and streaming company, is pleased to provide a technical update for the Warrawoona Royalty over exploration licence E45/3381, which forms part of the broader Warrawoona Gold Project, ("Warrawoona" or the "Project") owned and operated by ASX-listed Calidus Resources Limited ("Calidus"), which has successfully passed a number of important development and finance milestones.
Calidus has stated that it is fully funded to commence gold production at the Project, scheduled in early 2022, following the completion of a Definitive Feasibility Study ("DFS") in
Trident has a binding agreement to acquire a 1.5%
"We are delighted to provide an update on mine development progress at the 1.5Moz Warrawoona Gold Project, over part of which Trident holds a 1.5%
"With the recent announcement that the Project is fully funded through to mine production, coupled with the pending conversion of part of Trident's royalty tenement E45/3381 to a
Mining Lease Application and Exploration Potential 2, 3
· M45/1289 hosts the eastward strike extension for the Project's Mineral Resource and is understood to host a minority part of the Ore Reserve2 which forms the basis of the Calidus Warrawoona Project DFS.
· A regional exploration review undertaken by Calidus in the Warrawoona area has identified 22 high-priority exploration targets, approximately half of which are interpreted to fall within E45/3381 and hence under the Trident royalty.
Warrawoona Project Financing 4, 6, 7
· Macquarie Bank Ltd ("Macquarie") providing
· Calidus has firm commitments to raise approximately
· Project gold price risk hedged through forward sales of 125,000oz Au, representing 19% of the Warrawoona DFS gold production at an achieved forward price of
Project Construction 4, 5, 7
· Construction of 7km Project access road is complete.
· Orders placed for long lead items, including the Processing Plant's 4,500kW
· Installation of a 240-room accommodation village is advancing well.
· Western Australian Department of Mines and Petroleum (DMP) has approved the Project Management Plan for Warrawoona. Calidus expects the remaining two approvals, being the Mining Proposal and Works Approval, to be granted shortly.
Project DFS Metrics 1, 4
· Feasibility Pre-Tax Project Cashflow of
· Average gold production of 90,000oz/year over first 7 years, peaking at 105,000oz in year 5.
· Life of
· Pre-production capital cost of
· Underground Reserve of 120,000oz with growth potential from planned Resource extensional and infill drilling.
1 Source: Calidus Resources press release dated
2 Source: Government of Western Australia Mineral Titles Online search result. Search date
3 Source: Calidus Resources press release dated
4 Source: Calidus Resources press release dated
5 Source: Calidus Resources press release dated
6 Source: Calidus Resources press release dated
7 Source: Macmahon Holdings press release dated
Competent Person's Statement
The technical information contained in this disclosure has been read and approved by Mr
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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Trident Royalties Plc
+1 (757) 208-5171
Grant Thornton (Nominated Adviser)
+44 020 7383 5100
Tamesis Partners LLP (Financial Adviser and Joint Broker)
+44 203 882 2868
Shard Capital Partners LLP (Joint Broker)
+44 207 186 9927
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Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.
Key highlights of Trident's strategy include:
· Constructing a royalty and streaming portfolio to broadly mirror the commodity exposure of the global mining sector (excluding thermal coal) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;
· Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on
· Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
· Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;
· Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
· Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.
The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.
Third Party Information
As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.
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