Trident acquires copper royalty over significant asset
Trident Resources Plc, to be renamed Trident Royalties Plc, has announced that it has entered into an agreement with Moxico Resources plc to acquire a staged Gross Revenue Royalty over production from the operating Mimbula copper mine and associated stockpiles located in Zambia’s prolific Copperbelt Province.
The GRR is being acquired in exchange for a cash consideration of US$5.0 million. Trident is entitled to royalty payments on production commencing from 1 July 2020 and extending in perpetuity.
The Central African copperbelt is the world’s largest and highest-grade sediment-hosted copper district, with world class mining operators in the region such as First Quantum, Glencore, Rio Tinto, Barrick, Ivanhoe and China Non-Ferrous Metals.
The Mimbula Mine is an open pit operation located adjacent to the Konkola Copper Mine complex. As an established mining district, Zambia boasts excellent infrastructure, a skilled workforce, and suitable legal framework for mining royalties.
Mimbula has JORC (2012) Measured and Indicated Resources of 69.8Mt grading 0.96% total copper (“TCu”) for approximately 668,000 tonnes of contained copper and an Inferred Resources of 14.2 Mt grading 0.92% TCu for approximately 130,000 as at August 2019.
In addition, the Company has a non-compliant Resource on the Zuka licence of 7.3Mt grading 1.1% TCu for 80,400 tonnes of contained copper. The Company has a strategic, life-of-mine tolling agreement with Konkola Copper Mines in which the oxide ores are currently being processed through the Nchanga Tailings Leach Plant, producing LME Grade A copper cathode.
“We are delighted to announce the acquisition of a cash generative royalty over the Mimbula Mine, a long-life asset with favourable production and cost profiles. The royalty will provide our investors with exposure to an attractive commodity produced from an asset located in a prolific region in the Zambian Copperbelt, operated by an experienced management team,” commented Adam Davidson, Chief Executive Officer and Executive Director of Trident
“In addition, the royalty is structured attractively such that Trident will rapidly recover its invested capital, while retaining long-life exposure to the growth of the asset. We are very pleased to have concluded transactions on two cash generative royalties within a short time frame and I look forward to reporting further on our progress as we continue to build a diversified portfolio of mining royalties and streams.”
