Pursuant to the sale and purchase agreement, Trident shall pay up to US$10 million in three tranches, the first being US$1.5 million in cash to Atherton Resources LLC on closing.
Trident Royalties to acquire advanced stage Lithium Royalty. (Credit: omid roshan on Unsplash)
Trident Royalties Plc (AIM: TRR, OTCQB: TDTRF), the diversified mining royalty company, is pleased to announce that it has entered into a binding sale and purchase agreement to acquire an existing lithium royalty (the “Royalty”) from Atherton Resources LLC over projects owned by Anson Resources Ltd. (“Anson”, ASX:ASN, market capitalisation of circa A$175 million), in the Paradox Basin in Utah, USA. The Royalty notably covers Anson’s flagship Paradox Lithium Project (“Paradox”).
The Royalty is a 2.50% net smelter return (“NSR”) royalty tied to Anson’s ownership of the projects. Should Anson sell a property within the Paradox Basin, Trident will be entitled to 2.00% of the net sales proceeds and the royalty would no longer apply to the sold asset.
Adam Davidson, Chief Executive Officer of Trident commented:
“We are delighted to announce the acquisition of this royalty over the Paradox Lithium Project. For a modest initial cash outlay, we have secured exposure for shareholders to a well funded, highly attractive project with a pathway to cash generation and significant growth potential. The Paradox project reinforces our strong position in battery materials, and introduces exposure to direct lithium extraction, which could play a significant role in future lithium supply. The acquisition again demonstrates Trident’s ability to source innovative transactions to create shareholder value.”
Paradox Lithium Project
Paradox is an advanced stage development project located in the Paradox Basin in Utah, USA, which contemplates the extraction of lithium from brines associated with past oil and gas operations.1 Paradox consists of 2,434 placer claims, of which 87 are subject to an earn-in agreement. Upon completion of the pending acquisition of the Green Energy Lithium Project from Legacy Lithium Corp., Paradox will comprise a land holding of 231 square kilometres.2 Paradox has an Indicated Mineral Resource estimate for 346,109 tonnes LCE and an Inferred Resource 691,800 tonnes of LCE.
Source: Company Press Release