Trident Royalties to acquire gold royalty in Australia

Photo: Trident Royalties

Trident Royalties Plc announces that it has entered into a binding agreement with Thor Mining Plc (“Thor”), to acquire Thor’s variable price gold royalty over production from the Spring Hill Gold Project located in Australia’s Northern Territory and operated by private group PC Gold Pty Ltd. The Royalty is being acquired in exchange for a staged consideration of cash and/or equity with a total consideration of 1.0 million Australian dollars (“A$”) (the “Transaction”), of which A$400,000 is payable upon completion of the Transaction and the balance following the commencement of production from Spring Hill.

Spring Hill is located within the highly prospective Pine Creek region in Australia’s Northern Territory, which has historically produced over 3Moz of gold across multiple deposits and contains more than 10Moz of undeveloped Resources. Gold contained at Spring Hill is freely leachable via conventional processing methods and contains a material proportion of gravity recoverable gold which is susceptible to low capital cost gravity concentration and leaching techniques.

 Spring Hill has a JORC (2012) compliant global Inferred Mineral Resource Estimate of 8.8Mt grading 1.26g/t Au for 355,000 ounces of contained gold at 0.5g/t Au cut-off, as at January 2017.

 Adam Davidson, Chief Executive Officer and Executive Director of Trident commented:

 “We are delighted to announce the acquisition of an attractive development stage royalty over the Spring Hill Project. The royalty extends our portfolio and provides our investors with exposure to a desirable commodity, produced from an asset located nearby to existing infrastructure and processing facilities in a geologically compelling and proven gold province in Australia. In addition, the royalty is structured such that Trident’s upfront consideration is minimised until particular production milestones are achieved whilst retaining uncapped exposure to the growth of Spring Hill.

 “We are very pleased with the addition of the Spring Hill royalty into Trident’s growing portfolio of royalties which seeks to provide investors with exposure to a diversified portfolio of royalty and stream interests over attractive assets. At this early stage we are delighted to have already secured exposure to royalties in iron ore, copper and gold, with a number of attractive opportunities currently under evaluation.”

The Royalty is being acquired for a total consideration of A$1.0 million (US$0.7 million).