Shares in Trident Royalties PLC (AIM:TRR, OTCQX:TDTRF) were up 2% in morning trading after it updated on a mining project that has the potential to move the dial financially for the group.
It relates to Lithium Americas' award of a US Department of Energy (DoE) loan for $2.26 billion under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program.
This will be used to finance the building of processing facilities at Thacker Pass, a lithium operation in Nevada, where Trident has a net 1.05% gross revenue royalty (after the expected exercise of a partial royalty buyback, which would bring in $13.2 million).
First production from the Nevada project is expected within three years, which would see the start of royalty payments.
Adam Davidson, Trident's CEO, said receipts from the royalty stream would have a "dramatic impact" on the company's revenue, with $10.5 million generated per year at Phase 1 production and a $25,000 lithium price, increasing to $21 million per year at Phase 2.
Liberum reiterated its buy advice and 79p target valuation, more than double the current share price of 35.65p.
The investment bank added: "Also in recent news, we have seen Blyvoor (Trident has a significant gold offtake agreement for life of mine) intention to list on the Nasdaq, another incremental de-risking step and hopefully provide more visibility to the asset's production outlook."