LONDON, UK: Trident Royalties Plc (AIM: TRR), the diversified mining royalty and streaming company, has entered into an settlement to acquire a gold offtake contract over the Sugar Zone Mine in Canada, owned and operated by Silver Lake Resources Limited (ASX:SLR) from Orion Resource Partners.
With this, Trident now holds a complete of eleven money flowing assets, along with its attractive pipeline of superior stage assets.
Sugar Zone is a producing underground gold mine located in Ontario, Canada. Trident is buying the Offtake for a complete consideration of US$3.75 million, payable in new ordinary shares of 1p every within the Company issued at 51.43p per share, being the 10-day quantity weighted common price of Trident’s shares to 18 March 2022, the final buying and selling day previous to the date of the agreement.
The Offtake covers 50% of all gold manufacturing at Sugar Zone as much as 375,000 delivered ounces, with roughly 335,000 ounces remaining under the Offtake.
Adam Davidson, Chief Executive Officer and Executive Director of Trident commented: “I am happy to announce the acquisition of a gold offtake over the Sugar Zone mine located in Ontario, Canada. This is the fifth transaction that Trident has introduced within the final 12 months, as we maintain our momentum in delivering high-value, accretive deals.
This Transaction arises as an addition to the portfolio acquired on eleven January 2022 and builds upon our profitable relationship with Orion. Now underpinned by Silver Lake’s appreciable monetary and operational acumen, we glance ahead to Sugar Zone developing right into a premier Canadian gold mine. The Transaction provides Trident with accretive growth and immediate cashflow. In addition, the asset offers additional geographical and operational diversity and elevated publicity to the gold price and volatility, each of which stay heightened within the present geopolitical climate.
I am optimistic about the outlook. We have an excellent pipeline of potential transactions throughout a vary of commodities, particularly towards additional base and battery metal exposure, which will allow us to maintain balance in our portfolio. This Transaction for shares provides an eleventh money flowing asset to our portfolio whereas conserving money reserves, ensuring we can proceed to be nimble and dynamic with future transactions.”