1st May 2020 10:39
(Alliance News) - Trident Resources PLC on Friday reported a loss for the eight months to December-end as a consequence of higher administrative expenses and foreign exchange loss in particular.
Trident moved its year-end date to December 31 from April 30. As such, its annual report covers the eight months to December 31 while the comparative period runs from April 2018 - when the company incorporated - to April 2019.
The company's loss for the eight months ended December 31 was USD688,963, versus USD301,712 in the prior period, and was entirely the result of administrative expenses. Included in administrative expenses was a USD308,547 loss on foreign exchange, with no such loss the previous period.
"Trident started the period seeking to acquire a controlling interest in an asset or business in the mining sector. However, whilst evaluating numerous asset opportunities it became evident to the Board that there is a significant, attractive opportunity to rapidly establish Trident as a diversified mining royalty and streaming company. The company, together with its advisers, undertook an in-depth review of the potential of this revised strategy which strengthened the board's conviction to pursue a royalty and streaming strategy," said Chair James Kelly & Chief Executive Adam Davidson.
Trident has signed a definitive purchase agreement with Fe Ltd to acquire a 1.5% free on board revenue royalty covering part of the producing Koolyanobbing iron ore operation, located in Western Australia. Trident will pay AUD7.0 million in cash for the royalty, around USD4.5 million.
The deal is conditional on Fe Ltd getting the necessary shareholder approvals and - unless waived by Trident - admission to London's AIM market or re-admission to the Main Market, as well as Australian foreign investment approval. A meeting to obtain shareholder approval from Fe Ltd's shareholders is scheduled for May 22.
"The company does not anticipate any issues arising with respect to [foreign investment approval], though the Australian federal government recently extended the statutory deadline for decisions from 30 days to a maximum period of 6 months due to the Covid-19 crisis. As a result of the potential delay arising from the satisfaction of the conditions, on 30 April 2020 Trident and [Fe Ltd] agreed to extend the longstop for completion to 31 July 2020," said Trident.
Shares in Trident are currently suspended as the Koolyanobbing acquisition is deemed a change in strategic mandate.
By Anna Farley; [email protected]
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