Trident Royalties PLC (AIM:TRR), the mining royalty and streaming company, has entered into an agreement to acquire a gold off-take contract over the Sugar Zone Mine.
The Sugar Zone underground gold mine in Ontario, Canada is owned and operated by Silver Lake Resources Limited but the contract is being bought from Orion Resource Partners for US$3.75mln, payable in shares issued at 51.43p per share.
The off-take covers 50% of all gold production at Sugar Zone up to 375,000 delivered ounces, with about 335,000 ounces remaining under the off-take.
With this acquisition, Trident now holds a total of 11 cash flowing assets, in addition to its attractive pipeline of advanced-stage assets, the company told investors.
“This is the fifth transaction that Trident has announced in the last 12 months, as we maintain our momentum in delivering high-value, accretive deals,” said Adam Davidson, the chief executive officer of Trident.
“This transaction arises as an addition to the portfolio acquired on 11 January 2022 and builds upon our successful relationship with Orion. Now underpinned by Silver Lake's considerable financial and operational acumen, we look forward to Sugar Zone developing into a premier Canadian gold mine. The transaction provides Trident with accretive growth and immediate cash flow. In addition, the asset offers further geographical and operational diversity and increased exposure to the gold price and volatility, both of which remain heightened in the current geopolitical climate,” he added.