Trident Royalties PLC (AIM:TRR) has acquired a royalty and milestone payment over a project nearing production in Mexico and its first income stream from silver.
La Preciosa is owned by Canada-listed Avino (TSX-V:ASM) Silver & Gold Mines, though Trident is acquiring the interest from Coeur Mining (NYSE:CDE).
Royalties comprise a 1.25% net smelter return (NSR royalty) over the Gloria and Abundancia veins plus a 2.00% gross value return royalty (GVR Royalty) covering all other areas of La Preciosa.
In addition, a milestone payment of US$8.75mln is due Trident within 12 months of silver production starting at La Preciosa, with up to 50% of the consideration payable in Avino (TSX-V:ASM) shares.
Trident paid Coeur US$7mln for the royalty with a further US$1mln due when the milestone payment is received.
Adam Davidson, Trident’s chief executive, said: "This transaction with Coeur again demonstrates our ability to add value for shareholders.
“[The deal] … provides Coeur with a meaningful cash consideration while delivering an attractive return for our investors.
La Preciosa is a "highly attractive, long-life asset", he added, that should be generating cash in the near term.