2nd Jun 2020 14:14
(Alliance News) - Trident Resources PLC was admitted to trading on London's junior AIM market on Tuesday following a GBP16 million placing.
The company intends to establish itself as a mining royalty and streaming company and to build "a portfolio to broadly mirror the commodity exposure of the global mining sector, with a bias towards production or near-production assets".
Trident's raised the GBP16 million via the placing of 80.0 million shares at 20 pence each. On admission, it had 103.5 million shares in issue, giving it a market capitalisation at the placing price of around GBP20.7 million.
The first royalty acquisition, which Trident expects to complete shortly, will be a 1.5% free on board royalty over part of the Koolyanobbing iron ore project in Western Australia. Koolyanobbing is operated by Mineral Resources Ltd.
Once Trident has achieved scale, it is predicting "strong cash generation" which will go toward "an attractive dividend policy".
The firm's shareholder base includes LIM Asia Special Situations Master Fund, as well as Terra Capital Natural Resources Fund, and Regal Funds Management, Tribeca Investment Partners.
Chief Executive Officer Adam Davidson said: "With the completion of our recently announced GBP16 million equity financing and AIM admission, we have developed a strong platform from which to deliver our strategy. Our focus is now on executing on our pipeline of transactions and assessing new opportunities, ranging from new primary transactions to the acquisition of existing royalty and streaming assets, as well as portfolio transactions in the secondary market."
Non-Executive Chair James Kelly said: "Our fundraising represents the largest equity placing associated with a new listing in any sector across the London markets in over three months, an outstanding achievement for a new offering in the context of such difficult general market conditions. I believe that this underscores the strength of both our strategy and management team and we now look forward to executing on our growth plans."
By Anna Farley; [email protected]
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