Talga sells gold royalties
PERTH (miningweekly.com) – ASX-listed Talga Resources has struck a sales agreement for the company’s gold royalty entitlements in Western Australia, with Aim-listed Trident Royalties.
The royalties cover four projects located in the Pilbara and Yilgarn regions, and include a 1.5% net smelter royalty over tenements within the Talga Talga, Warrawoona and Mosquito Creek projects and a 1% net smelter royalty over tenements at the Bullfinch project.
The projects range from feasibility to resource development and exploration target stages and include mining lease/exploration tenements prospective for greenstone-hosted orogenic gold, intrusive-related gold and placer/palaeoplacer-related gold deposits.
Under the terms of the agreement, Trident would pay Talga A$800 000 for the royalties, consisting of a A$250 000 cash payment and the equivalent of A$550 000 in Trident shares, subject to a six-month escrow period.
Trident CEO and executive director Adam Davidson says the royalty package will provide precious metals exposure in the world's top mining jurisdiction.
“In particular, we are excited to follow the progress of Novo Resources and Calidus Resources as they advance their respective projects. The royalty package adds further depth and breadth to our growing portfolio and will provide our investors with exposure to a package of attractive underlying assets, located in a desirable jurisdiction being supported by gold prices at close to all-time highs.
"The acquisition further contributes to Trident's strategy of constructing a portfolio of royalties and streams to broadly mirror the global mining sector, with the transaction structured such that it preserves Trident's cash for future acquisitions, facilitating the further build-out of critical mass in the portfolio.
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