By Christian Moess Laursen
Trident Royalties said it has bought an existing lithium royalty on projects in the Paradox Basin in Utah, U.S., from Atherton Resources for a total consideration of $10 million.
The mining royalty and streaming company said Monday that the royalty is 2.50% of net smelter return–the net revenue the mine owner gets from the sales, with transportation and refining costs deducted.
In addition, Trident will get 2% of net sales should Anson Resources–the owner of the projects–sell a property within the basin.
At spot prices of around $35,000 per metric ton lithium-carbonate equivalent, the royalty would pay around $11 million yearly for the first 10 years, the company said.
Payment is split in three tranches, with $1.5 million cash on closing, $3.5 million in the second trance and $5 million in the third.
“The Paradox project reinforces our strong position in battery materials, and introduces exposure to direct lithium extraction, which could play a significant role in future lithium supply,” Chief Executive Adam Davidson said.
Write to Christian Moess Laursen at christian.moess@wsj.com
Read the full article here