Trident secures rights over Sonora lithium royalty interest
Mining royalty and streaming company Trident Royalties has entered into an agreement to acquire an indirect royalty over the Sonora lithium project, in Mexico, from the estate of Colin Orr-Ewing.
Orr-Ewing, who passed away in 2016, was the founder of Bacanora, which jointly owns the Sonora project in a joint venture (JV) with Ganfeng Lithium.
Bacanora recently become a subsidiary of Ganfeng as a result of an £285-million cash offer for all Bacanora's ordinary shares. Sonoroy, a JV company in which Trident holds a 50% interest, has the right to acquire the royalty for a total of $52-million in cash.
The transaction is expected to be completed in early 2023, subject to a favourable resolution of a dispute between the estate and Bacanora.
At the current lithium carbonate equivalent spot price of about $55 000/t, following completion, Trident expects the Sonora project to deliver revenue of $14.4-million a year, which will double when the project advances to its second stage.
Trident will further benefit from potassium sulphate (potash) by-product revenues at Sonora, providing a new commodity exposure to a high-value fertiliser product.
Trident also holds a royalty over the Thacker Pass lithium project, in the US.
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