17 December 2021

Trident Royalties Plc

("Trident" or the "Company")

$40 million Loan Facility

Trident Royalties Plc (AIM:TRR, FSX:5KV), the growth-focused mining royalty and streaming company, is pleased to announce that, following the announcement on 13 December 2021, the Company has signed the $40 million secured loan facility agreement with Macquarie Bank Limited ("Macquarie"), (the "Facility").

The Facility will be used to retire the existing $10 million secured loan facility provided by a syndicate managed by Tribeca Investment Partners, with the balance used to complete the acquisition of the gold offtake streams from funds managed by Orion Resource Partners ("the Acquisition"), also announced on 13 December 2021. 

Adam Davidson, Chief Executive Officer of Trident commented:

"We are extremely pleased to be working with Macquarie, a highly respected financial institution in the natural resources sector and completing this important step to closing the recently announced Acquisition."     

Key Terms

The Facility will be drawn on completion of the Acquisition and will mature on 31 December 2024. Trident will pay a coupon of 7.75% plus compounded SOFR, with interest payable quarterly. Regular quarterly repayments of US$2.5m will commence on 30 June 2023 with a final bullet payment on maturity.

In addition, by 31 January 2022, the Company will grant warrants to subscribe for 14,840,517 shares in Trident to the lenders ("Warrants") exercisable at £0.51 per share, a price representing a 30% premium to the 20-day volume weighted average price prior to the date of the commitment letter.

The Warrants are exercisable immediately on issue and will expire 36-months from the date of issue.  Exercise in full of the Warrants will bring US$10 million of cash into the Company which can be used to part fund repayment of the loan.  As the issue of the Warrants will exceed the Directors current share authorities, the issue of the warrants is conditional upon shareholders granting the directors the authority to issue and allot, free of pre-emption rights, the Warrants.  Resolutions to approve this have been proposed at the General Meeting which has been convened for 10 January 2022. If the issue of the Warrants is not approved by shareholders, Trident would, absent agreeing a waiver of the same by 31 January 2022, be in breach of the terms of the Facility.

Closing and drawdown of the Facility are expected by mid-January and release of the amounts to the borrower under the Facility is subject to the execution of the sale and purchase documentation for the Acquisition, the successful completion of the firm placing element of the Placing announced on 14 December 2021, the execution of the definitive documentation relating to the Debt Facility and related security, and other conditions customary for a transaction of this nature.

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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About Trident

Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.

Key highlights of Trident's strategy include:

·    Expanding on a royalty and streaming portfolio which broadly mirrors the commodity exposure of the global mining sector (excluding thermal coal) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;

·    Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;

·    Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;

·    Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;

·    Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and

·    Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.

 The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.