Trident Royalties PLC (AIM:TRR) has welcomed the proposed acquisition by Ramelius Resources of Apollo Consolidated, in which Trident has a royalty interest.
Trident has a 1.5% net smelter return gold royalty over Apollo’s flagship Lake Rebecca Gold Project in Western Australia.
The board of Apollo has recommended acceptance of the Ramelius offer.
"Trident is pleased to note the announcement of the transaction, which would see the Lake Rebecca Project acquired by Ramelius, a well capitalised, ASX listed mid-tier gold company with substantial existing producing gold centres in Western Australia,” said Adam Davidson, the chief executive officer of Trident.
“Ramelius views Lake Rebecca as a potential cornerstone asset and has indicated its intent to identify a pathway to a mine life of 10 years at a run rate of at least 100,000 ounces per annum, which is in excess of Trident's original economic assessment. Ramelius has the in-house expertise within its established workforce to progress Lake Rebecca towards production, as well as the requisite operational expertise to maximise the value of the project,” he added.
Shares in Trident were up 2.7% at 37.5p in early deals.