- $10mn acquisition of lithium smelter royalty in Utah
- $6.25mn purchase of gold royalty in Mali
- Uncertainty over Sonora lithium project
Commodity royalty group Trident Royalties (TRR:41p) has been ramping up its deal flow in recent months. The latest acquisition looks like one of the group’s smartest to date, the purchase of a 2.5 per cent net smelter royalty (NSR) over projects owned by Anson Resources (AU:ASN) in the Paradox Basin, Utah. The transaction includes Anson’s flagship lithium project.
Having released a definitive feasibility study in September 2022, outlining a Phase One operation producing an initial 13,074 tonnes of lithium carbonate for the first 10 years of a 23-year operation, Anson is targeting a final investment decision (FID) at the end of this year. Capital expenditure of $495mn is required to get the project up and running, but it will be eligible for financial support through the Inflation Reduction Act in the US.