Trident Royalties Plc (AIM: TRR, FSX: 5KV), is pleased to note a significant development relating to its Mimbula Copper Royalty and the project operator, Moxico Resources Plc (“Moxico”).

HIGHLIGHTS

• Moxico recently completed a US$73 million equity financing, the proceeds of which will be used to fast track the development of a standalone processing operation at the Mimbula copper mine in Zambia (“Mimbula”).
• Copper production to date has been from the processing of ore from the Mimbula surface stockpiles via toll treatment at the nearby KCM Tailings Leach Plant.
• Moxico intends to significantly increase production by commencing construction of a self-operated solvent extraction and electrowinning processing facility to produce copper at an anticipated annual run-rate of 30,000 tonnes by late-2022.
• The early cash generated from the current toll treatment operation has allowed Moxico to commence preparatory activities for mining of the Mimbula Pit 2, including dewatering and blasting. Early site works have also commenced for the heap leach pads and plant area with over 350 Zambians currently working on the project.
• Mimbula has JORC (2012) compliant Measured and Indicated Resources1 of 69.8Mt grading 0.96% total copper (“TCu”) for approximately 668,000 tonnes of contained copper and additional Inferred Resources of 14.2Mt grading 0.92% TCu for approximately 130,000 tonnes of contained copper as of August 2019. In addition, Mimbula has a non-compliant resource on the Zuka licence of 9.7Mt grading 1.14% TCu for 110,600 tonnes of contained copper.
• The financing underscores the robustness of the Mimbula copper mine, which is set to deliver a material increase in production against the backdrop of an exceptionally strong global market for base metals.
• The financing further highlights a key attribute of royalties as financial instruments; specifically, that Trident benefits from the continued funding and advancement of the underlying projects over which it holds royalties without exposure to equity dilution.

THE MIMBULA COPPER ROYALTY

The Mimbula Copper Royalty is a Gross Revenue Royalty (“GRR”) which was acquired on 29 June 20202 for a total consideration of US$5 million. The GRR rate is 1.25%, decreasing to 0.3% upon US$5 million being paid on the royalty, with a subsequent decrease to 0.2% once the royalty has been paid on a total of 575,000 tonnes of copper.

In addition, the GRR is subject to a Minimum Payment Schedule in which the higher of the minimum amount, or the Gross Revenue Royalty amount, are due; specifically:

• Minimum payments of US$375,000 per quarter in 2021;
• Minimum payments of US$500,000 per quarter in 2022; and
• Minimum payments of US$750,000 in each of the first two quarters of 2023.

To date, Trident has received US$453,707 in royalty payments.

Adam Davidson, Chief Executive Officer of Trident commented:

“We are incredibly pleased to see such a significant development for a key asset within Trident’s royalty portfolio. The financing conducted by Moxico to materially expand copper production at the Mimbula copper mine underscores the value of acquiring royalties over quality assets being advanced by experienced management teams. The Mimbula Copper Royalty provides Trident’s investors with long-life copper exposure – a key base and battery metal – from an operating asset with further upside potential located in a prolific copper district.”

CEO Adam Davidson provides an overview of the business and its strategy below