Thacker Pass: Ontario Court Dismisses LRC Action
24 November 2021
Trident Royalties Plc
("Trident" or the "Company")
Thacker Pass Royalty Update
Ontario Court Dismisses LRC Action Against Trident
Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused mining royalty and streaming company, is pleased to announce that a judge of the Ontario Superior Court of Justice granted a motion to stay a lawsuit brought against Trident by Lithium Royalty Corporation ("LRC"), effectively dismissing the litigation as against Trident.
On or about February 11, 2021, LRC brought an application against Orion Resource Partners ("Orion") in Ontario, Canada, alleging that there was an oral agreement that gave rise to a binding agreement of purchase and sale of the Thacker Pass Royalty now owned, as to a 60% interest, by Trident and seeking an order for specific performance in respect of that alleged agreement. As reported by Trident at the time of its acquisition of its interest in the royalty, Trident anticipated that LRC might seek to join Trident as a party to the existing litigation as a matter of process, in light of the remedy being sought and on 30 April announced that, as anticipated, the third-party claimant had named Trident as a party to the litigation.
The order by the Ontario Supreme Court of Justice found, inter alia, that no action of Trident resulted in it acceding to the jurisdiction of the Ontario Supreme Court and there were no other reasons to compel it to participate in the litigation between LRC and Orion in Ontario.
The decision may be appealed by LRC within a period of 30 days, commencing 23 November 2021. Further announcements will be made in connection with the ongoing litigation between LRC and Orion as appropriate.
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Trident Royalties Plc
+1 (757) 208-5171
Grant Thornton (Nominated Adviser)
Colin Aaronson / Samantha Harrison
+44 020 7383 5100
Tamesis Partners LLP (Joint Broker)
+44 20 3882 2868
Shard Capital Partners LLP (Joint Broker)
Erik Woolgar / Isabella Pierre
+44 20 7186 9927
St Brides Partners Ltd (Financial PR & IR)
Susie Geliher / Catherine Leftley
+44 20 7236 1177
Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.
Key highlights of Trident's strategy include:
· Expanding on a royalty and streaming portfolio which broadly mirrors the commodity exposure of the global mining sector (excluding thermal coal) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;
· Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;
· Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
· Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;
· Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
· Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.
The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.
Third Party Information
As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.