LONDON, UK / ACCESSWIRE / November 8, 2023 / Trident Royalties Plc (AIM:TRR)(OTCQB:TDTRF), the diversified mining royalty company, is pleased to announce it has entered into a binding royalty purchase agreement with ASX-listed New World Resources Limited ("New World", ASX Ticker:NWC) to acquire a net smelter return ("NSR") royalty (the "Royalty") on all metal production from New World's flagship Antler Copper Project ("Antler", or "the Project"), a copper-zinc polymetallic deposit located in Arizona, USA.

HIGHLIGHTS

The Transaction

Trident will pay A$11 million (approx. US$7 million) in cash for the Royalty. The Royalty includes:

• A 0.90% NSR royalty over the current tenement package which covers the entire Project, including the Antler deposit and five named exploration targets ("Project Area Royalty").
• A 0.45% NSR royalty over any ground subsequently acquired by New World within 5km of the Project Area Royalty boundary ("AOI Royalty").

The Asset

• Antler is an advanced stage, high-grade copper-zinc polymetallic deposit in a secure mining supportive jurisdiction¹ with a JORC (2012) compliant Mineral Resource estimate of 11.4Mt @ 4.1% Cu-equivalent² for approximately 467,000 tonnes of Cu-equivalent.
• Enhanced Scoping Study published in May 2023³, highlighted:

o Strong project economics, with a pre-tax NPV@7% of US$835 million and a low capital expenditure of US$252 million, delivering an IRR of 40.2%.

o 50% of expected revenue from copper and 38% from zinc, with by-product credits from lead, gold and silver.

o 13-year mine life with average annual production of 32,700 tonnes copper equivalent (over years 2-11)

• Mine development and surface infrastructure will be located on privately owned land, which is currently owned or controlled by New World, thereby streamlining the permitting process⁴.
• A Pre-Feasibility Study on the Project is expected in Q4 2023, with commencement of pre-construction development works targeted for Q1 2025⁴.
• Trident considers there to be significant upside potential, with New World actively targeting exploration opportunities across its land holdings⁵.
• New World recently attracted a A$5 million investment from a leading US mining private equity firm⁶ which, when coupled with Trident's investment, leaves it well funded to advance the Project through the remainder of its planned feasibility studies.

Adam Davidson, Chief Executive Officer of Trident commented:

"At the end of last year, we indicated that the market for royalties was becoming more active as projects looked for funding outside of traditional equity and debt markets. That has proven to be the case, with Antler marking our fifth transaction this year.

"This is a highly attractive royalty. The commodity mix complements our existing portfolio, with future-facing base metals to sit alongside our lithium, precious metals, and existing base metals exposure. The location and management of the asset are both excellent and we expect the royalty to deliver significant value for Trident shareholders."

Antler Copper-Zinc Rich Polymetallic Project⁴

Antler is an advanced Scoping Study stage, copper-zinc polymetallic (copper, zinc, lead, gold, silver) volcanic massive sulphide deposit located in the mining friendly U.S. state of Arizona. Arizona was recently ranked as the 7^th most attractive mining investment jurisdiction in the world¹. The Project is located 15km east of the town of Yucca and 40km to the south of Kingman (Figure 1). New World acquired 100% of the Project in March 2020.

Figure 1 - Antler Location Map⁴

The deposit was originally identified in the late 1800s with intermittent production reported between 1916-1970, but no activity since 1975. The deposit outcrops over a strike length of 750 metres and is open at depth. In addition, the wider Project area includes a further five as yet undrilled exploration targets within a 6km strike length, comprising coincident geophysical and geochemical anomalies similar to Antler (Figure 2).

Figure 2 - Antler Location and Named Exploration Targets⁴

In November 2022, New World released an updated JORC 2012 compliant Mineral Resource estimate of 11.4Mt @ 2.10% Cu, 4.97% Zn, 0.89% Pb, 32.9 g/t Ag & 0.36 g/t Au gold at a 1.0% copper equivalent cut-off.²

Table 1 - 2022 Resource Estimate²

The Project infrastructure is considered excellent, with road access directly to the project site, electrical power to within 750 metres, and both an interstate highway and active railroad within 15 kilometres.

Scoping Study Delivers Strong Returns with Pre-Feasibility Study Nearing Completion

In May 2023, New World published an Enhanced Scoping Study with significantly improved project economics relative to a 2022 Scoping Study. The mine life was increased to an initial 13-years, with total production of 381,400 tonnes of copper equivalent metal. The pre-tax NPV@7% and pre-tax IRR are estimated to be US$835 million and 40.2%, respectively. The Project is based on a modest capital cost expenditure of US$252 million (including US$44.2M contingency)³.

Mine development and the location of all surface infrastructure will be constrained to privately-owned land which New World already owns/controls, which is expected to streamline the permitting process.⁴

A comprehensive development programme has been created by New World which is currently progressing a Pre-Feasibility Study due for completion in Q4 2023, before progressing to a Definitive Feasibility Study, with pre-construction development (commencement of decline) targeted for Q1 2025 (see Figure 3).

Figure 3: Forward Work Programme - Antler Copper Project⁴

Attractive Exploration Upside with Drilling Recently Restarted

Exploration drilling resumed in mid-October 2023 with drilling at the Project to date limited to just 600m of strike at the Antler deposit itself. Mineralisation remains completely open at depth at the Antler deposit (deepest hole intersected 21.3m @ 5.3% Cu-equivalent). As yet undrilled shallower exploration targets include the Antler Offset Target, Rattlesnake Ridge, Copper Knob, Insulator and West World prospects (see Figure 2). With exploration success at some or all of these targets, New World could potentially expand the existing Mineral Resource and evaluate a staged expansion of the processing facility it intends constructing at the Project and/ or extending the life of the proposed operation.

Buyback Provisions

The Royalty includes a Right of First Refusal providing Trident the right to match any royalty or streaming transaction associated with the Project, until 12 months following the declaration of commercial production at Antler.

The Royalty also contains two separate buyback provisions:

• The Project Area Royalty can be reduced from 0.90% to 0.60% following the payment of A$9 million at any time within 3 months of New World obtaining at least 75% of the funding required for the development and construction of Antler.
• The AOI Royalty can be reduced from 0.45% to 0.30% following the payment of A$4 million at any time within 3 months of New World obtaining at least 75% of the funding required for the development and construction of Antler.

If both buybacks are exercised, Trident will have recovered 120% of its investment prior to construction, whilst still retaining two-thirds of its initial uncapped, perpetual royalty exposure.

References

¹ Source: Fraser Institute Annual Survey of Mining Companies 2022, published on 4 May 2023

( https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022 )

² Source: New World Resources announcement dated 28 November 2022

(https://newworldres.com/wp-content/uploads/IncreaseInAntlerMineralResourceTo11Point4MtAt4Point1PercentCuEq28Nov22.pdf)

Mineral Resource Estimate for the Antler Copper Deposit above a 1.0% Cu-Equivalent cut-off grade

Notes: Mineral Resource stated at 1.0% Cu-equivalent cut-off. Cu=copper, Zn=zinc, Pb=lead, Ag=silver, Au=gold

Reported in compliance with 2012 Edition of the Australasian Code for Reporting of Exploration Results and Mineral Resources (JORC, 2012). Metal prices applied for the copper equivalent calculations were the spot prices prevailing on 10 October 2022, namely: copper - US$7,507/t, zinc - US$3,011/t, lead - US$2,116/t, silver - US$20.26/oz and gold - US$1,709/oz. Potential metallurgical recoveries were used for the following formula to calculate the copper equivalent grade, with results rounded to one decimal point:

Cu equivalent (%) = (Cu% x 0.872) + (Zn% x 0.889 x 3,011/7,507) + (Pb% x 0.591 x 2,116/7,507) + (Ag oz/t x 0.503 x 20.26/7,507x 100) + (Au oz/t x 0.700 x 1,709/7,507x 100)

³ Source: New World Resources announcement dated 2 May 2023

(https://newworldres.com/wp-content/uploads/AntlerCopperProjectEnhancedScopingStudyPresentation02May23.pdf)

⁴ Source: New World Resources announcement dated 19 September 2023

(https://newworldres.com/wp-content/uploads/ResourcesRisingStarsPresentation19Sep23.pdf)

⁵ Source: New World Resources announcement dated 18 September 2023

(https://newworldres.com/wp-content/uploads/ExplorationDrillingToResumeAtTheAntlerCopperProject18Sep23.pdf)

⁶ Source: New World Resources announcement dated 31 July 2023

( https://newworldres.com/wp-content/uploads/USPrivateEquityFirmMakesStrategicInvestment31Jul23.pdf )