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Trident Royalties announces completion of Spring Hill Gold Royalty acquisition

Published by , Editor
Global Mining Review,

Further to its announcement of 14 July 2020, Trident has announced that all conditions to the Spring Hill Gold Royalty Acquisition have now been satisfied and the transaction has now completed.

On 14 July 2020, the company announced that its wholly owned subsidiary TRR Services Australia Pty, Ltd. (TRR) had entered into a binding agreement to acquire an existing variable price gold royalty (royalty) over production from the Spring Hill Gold Project, located in Australia's Northern Territory, currently owned and operated by private Australian company PC Gold Pty Ltd.

The uncapped royalty provides for AUS$13.30/oz of gold produced from Spring Hill if the gold price is greater than AUS$1500/oz, or AUS$5.70/oz if the gold price is less than AUS$1500/oz. The current gold price is approximately AUS$2580/oz. The royalty was acquired for a total consideration of AUS$1 million, of which AUS$400 000 cash has been paid, with the remainder payable in two tranches in cash or new shares in Trident (at the election of TRR) upon satisfaction of various production milestones from Spring Hill.

In the event that TRR elects to satisfy any further tranche payments in new shares in Trident, the number of new shares to be issued shall be calculated at the volume weighted average price for the five trading days immediately prior to the date of the election and converted at the prevailing exchange rate.

The royalty is payable on production from mining licence ML23812, which covers 1035 ha. and hosts a JORC (2012) compliant inferred mineral resource of 8.8 million t at 1.26 g/t for approximately 355 000 oz of contained gold at a 0.5 g/t Au cut-off. The royalty also encompasses any future production from exploration licenses EL22957 and EL28855 which surround the granted mining lease.

Spring Hill is currently being actively advanced by private company, PC Gold Pty Ltd. It is located 28 km from an existing gold processing plant, which has successfully processed a bulk sample from the project, and benefits from access to attractive infrastructure.

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Australian mining news