Trident Royalties PLC said on Friday that the Thacker Pass lithium project has reached a ‘significant milestone’ after receiving a conditional commitment for a substantial loan from the US Department of Energy.
The London-based diversified mining royalty company holds a net 1.1% gross revenue royalty over Lithium Americas Corp’s project, which is to receive $2.26 billion from the federal government. The loan falls under the advanced technology vehicles manufacturing loan programme, and will be used to finance the construction of the processing facilities at Thacker Pass.
Federal support follows the first tranche of $320.0 million in funding from General Motors Co in February, with the second tranche of $330.0 million expected ‘before or in connection with closing of the DOE loan’.
Production of an initial 40,000 tonnes per year of battery grade lithium carbonate has been targeted at the project, which could support the lithium needs of up to 800,000 electric vehicles annually.
Trident Chief Executive Officer Adam Davidson said: ‘Thacker Pass is a high priority asset with considerable strategic value for the United States, and the commitment of a $2.26 billion loan from the U.S. department of energy underscores the level of support to bring this asset to production.’
The company expects first production to begin within three years and the associated royalty payments thereafter. These royalties are forecasted to generate $10.5 million annually for Trident in the first phase of production, increasing to $21.0 million at phase two.
Shares in Trident rose 1.4% to 35.49 pence each in London on Friday morning.
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