Acquisition of Copper Rich Polymetallic Royalty in USA

Trident Royalties Plc (AIM: TRR, OTC: TDTRF), the diversified mining royalty company, is pleased to announce it has entered into a binding royalty purchase agreement with ASX-listed New World Resources Limited (“New World”, ASX Ticker: NWC) to acquire a net smelter return (“NSR”) royalty (the “Royalty”) on all metal production from New World’s flagship Antler Copper Project (“Antler”, or “the Project”), a copper-zinc polymetallic deposit located in Arizona, USA.

HIGHLIGHTS

The Transaction

Trident will pay A$11 million (approx. US$7 million) in cash for the Royalty. The Royalty includes:

• A 0.90% NSR royalty over the current tenement package which covers the entire Project, including the Antler deposit and five named exploration targets (“Project Area Royalty”).
• A 0.45% NSR royalty over any ground subsequently acquired by New World within 5km of the Project Area Royalty boundary (“AOI Royalty”).

The Asset

• Antler is an advanced stage, high-grade copper-zinc polymetallic deposit in a secure mining supportive jurisdiction1 with a JORC (2012) compliant Mineral Resource estimate of 11.4Mt @ 4.1% Cu-equivalent for approximately 467,000 tonnes of Cu-equivalent.
• Enhanced Scoping Study published in May 20233, highlighted:
  • Strong project economics, with a pre-tax NPV@7% of US$835 million and a low capital expenditure of US$252 million, delivering an IRR of 40.2%.
  • 50% of expected revenue from copper and 38% from zinc, with by-product credits from lead, gold and silver.
  • 13-year mine life with average annual production of 32,700 tonnes copper equivalent (over years 2-11)
• Mine development and surface infrastructure will be located on privately owned land, which is currently owned or controlled by New World, thereby streamlining the permitting process4.
• A Pre-Feasibility Study on the Project is expected in Q4 2023, with commencement of pre-construction development works targeted for Q1 2025.
• Trident considers there to be significant upside potential, with New World actively targeting exploration opportunities across its land holdings5.
• New World recently attracted a A$5 million investment from a leading US mining private equity firm6 which, when coupled with Trident’s investment, leaves it well funded to advance the Project through the remainder of its planned feasibility studies.

Adam Davidson, Chief Executive Officer of Trident commented:

“At the end of last year, we indicated that the market for royalties was becoming more active as projects looked for funding outside of traditional equity and debt markets. That has proven to be the case, with Antler marking our fifth transaction this year.

“This is a highly attractive royalty. The commodity mix complements our existing portfolio, with future-facing base metals to sit alongside our lithium, precious metals, and existing base metals exposure. The location and management of the asset are both excellent and we expect the royalty to deliver significant value for Trident shareholders.”