Trident Royalties reports progress across several projects

Mining royalty investor Trident Royalties reported significant advancements at several of its mining projects on Monday, including at the Thacker Pass Lithium Project.

The AIM-traded firm said the Lithium Americas annual general meeting saw a strong shareholder consensus to divide the company into two entities - Lithium Americas Argentina, and a newly-formed Lithium Americas.

It said Thacker Pass would fall under the latter's umbrella.

Subject to customary closing conditions, the restructuring would allow for a $330m investment from General Motors into the new Lithium Americas, and could also pave the way for obtaining US government support for transition material funding.

Trident holds a 60% stake in a 1.75% gross revenue royalty for the lithium project, equivalent to a net 1.05%.

At the Greenstone Gold Project, Equinox Gold reported that the project was nearing completion, standing at 85%, with a budget and timeline adherence.

Gold production was set to start in the first half of 2024.

Expenses so far had touched $976m, leaving it poised to be one of Canada's largest gold mines.

It was aimed at producing more than 400,000 ounces annually in the initial five years, with over five million ounces expected in its 14-year lifespan.

Trident secured a commitment from Premier Gold Mines for the delivery of an annual offtake cap of 58,500 ounces in 2024 and 2025, with shortfalls to result in compensation at $23.50 per ounce.

At the Eagle Gold Project, Victoria Gold reported a 47% jump in gold production compared to the first half of last year.

The surge in production aligned with an updated technical report, which forecast an average annual gold production of 202,000 ounces over eight years.

Trident's entitlement covers 25% of gold production, capped at 1,111,500 delivered ounces.

At the Sugar Zone Gold Project, Trident said Silver Lake was looking to enhance performance for the project, necessitating a year-long pause in mining and processing activities.

The hiatus would accommodate an extensive drilling programme, mining method revisions, and logistic enhancements.

An investment of $35m was slated for Sugar Zone's growth, out of which $28m was allocated for the drilling of around 93,000 meters.

Trident's agreement entitles it to half of the gold production from Sugar Zone, with a cap set at 370,000 ounces.

Finally, at the i80 Gold Project, Trident said i80 Gold recently closed a CAD 36.8m equity fundraise, dedicating the proceeds towards exploration, development, and other corporate pursuits.

At Ruby Hill, gold production was underway through a residual leaching program.

The site also showed high-grade mineral findings, with 45.4 grams of gold and 50.2 grams of silver per tonne over a stretch of 17.5 metres.

Trident's entitlement encompasses the entire gold production from i80 Gold projects, capped at 37,500 ounces in 2023 and 40,000 ounces from 2024 to 2028.

“We have seen good progress across the portfolio in the first half of 2023, which provides a strong underpin to our asset value,” said chief executive officer Adam Davidson.

“We are also maintaining a good pipeline of prospective transactions, which backed by our robust balance sheet, should deliver further value accretion for shareholders.

“We look forward to updating shareholders over the course of 2023.”

At 1051 BST, shares in Trident Royalties were down 1.03% at 43.15p.

Reporting by Josh White for Sharecast.com.