13th Dec 2021 19:18
(Alliance News) - Trident Royalties PLC on Tuesday said it has agreed on the acquisition of a portfolio of gold offtake streams from funds managed by Orion Resource Partners for USD69.8 million in cash and shares.
The portfolio comprises offtakes covering seven producing gold mines which operate in six countries, including Mexico, Brazil and Canada.
To finance the cash component of the acquisition, the London-based mining royalty & streaming company will raise USD35 million, around GBP26.5 million, through a placing, subscription and retail offer, where the company will issue 73.6 million shares at 36 pence each.
Tamesis Partners LLP, Ashanti Capital Pty Ltd and Stifel Nicolaus Europe Ltd will act as joint bookrunners.
In addition, Trident will secure a USD40 million debt facility with Macquarie Bank Ltd, which will partly go towards funding the acquisition and retire an exiting USD10 million loan facility.
The facility will have a coupon of SOFR plus 7.75%, with a three-year term.
Of the consideration, USD9.8 million will be paid in shares issued at the placing price. Once the acquisition is completed, Orion will hold a 10% stake in Trident Royalties.
"The acquired portfolio of gold offtake streams gives direct exposure to high-quality producing gold assets, significantly increasing our precious metals exposure and complementing our existing portfolio of gold, lithium, copper and iron ore royalties. Crucially, the material and immediate income from the acquired assets gives us clear visibility on sustainable, well diversified cash flows beyond 2035," says Chief Executive Officer Adam Davidson.
Shares in Trident Royalties closed flat at 38.00 pence on Monday in London.
By Dayo Laniyan; [email protected]
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