Trident Royalties PLC (LON:TRR) has completed its acquisition of the Spring Hill royalty from Thor Mining PLC (LON:THR).
The uncapped royalty provides for A$13.30 per ounce of gold produced from Spring Hill if the gold price is greater than A$1,500 per ounce, or A$5.70 per ounce if the gold price is lower.
The current gold price is approximately A$2,580 per ounce. The royalty was acquired by Trident for a total consideration of A$1mln, of which A$400,000 cash has been paid, with the remainder payable in two tranches in cash or new shares in Trident upon satisfaction of various production milestones from Spring Hill.
Spring Hill is currently being actively advanced by private company PC Gold Pty Ltd.
It is located 28 kilometres from an existing gold processing plant, which has successfully processed a bulk sample from the project.
“We are delighted to complete the acquisition of the Spring Hill Gold Royalty which will provide our shareholders with additional precious metals exposure from an asset located nearby to existing infrastructure and processing facilities in a geologically compelling and proven gold province in Australia,” said Adam Davidson, chief executive of Trident.
Thor will use the cash to continue working on other projects, according to executive chairman Mick Billing.
“We are very pleased to complete the sale of the Spring Hill royalty entitlement,” said Billing.
“We have a very active period of field work scheduled at our Ragged Range, and US uranium/vanadium projects, and the funds received from the sale of this royalty will be applied against those programs.”
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