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Sonora Lithium Royalty

Sonoroy Holdings (the “Buyer”), a joint venture company in which Trident holds a 50% interest, has the right to acquire the Royalty for a total consideration of $52 million in cash ($26 million attributable to Trident).

Sonora Lithium Royalty

A deposit of US$2.5 million (the “Deposit”) has been paid by the Buyer, with the balance to be paid upon completion of the Transaction, expected to occur in late-2022 or early-2023 following a favourable resolution of a dispute between the seller of the royalty and Bacanora. If the dispute is found against the Estate, Trident’s funding is fully repayable by Sonoroy.

Sonora is slated to be North America’s next major lithium mine. The project currently has Measured & Indicated Resources exceeding 5Mt lithium carbonate equivalent (“LCE”), and an additional 3.8Mt LCE Inferred Resource. Per the Feasibility Study published by Bacanora Lithium in 2018, the mine is expected to produce 17,500 tpa LCE in Stage 1 and 35,000 tpa at Stage 2. Subsequently, the project was acquired by Ganfeng Lithium which, in its 2022 Interim Report, noted a larger planned production profile relative to the Feasibility Study, increasing Stage 1 to 20,000 tpa of lithium hydroxide, with Stage 2 production increasing by 43% to 50,000 tpa of lithium hydroxide. Construction is underway, which Ganfeng intends to accelerate. The project is also expected to generate potassium sulphate (potash), a high value fertilizer, as a by-product.

LocationMexico
OperatorGanfeng Lithium
CommodityLithium
Mining MethodOpen Pit
StageAdvanced

Reserve Estimate (NI 43-101)

Proven80Mt @ 3,905 ppm – 1,666kt LCE
Probable164Mt @ 3,271 ppm – 2,849kt LCE
Total244Mt @ 3,480 ppm – 4,515kt LCE

Resource Estimate (NI 43-101)

Measured103Mt @ 3,480 ppm – 1,910kt LCE
Indicated188Mt @ 3,120 ppm – 3,130kt LCE
M & I291Mt @ 3,250 ppm – 5,038kt LCE
Inferred268Mt @ 2,650 ppm – 3,779kt LCE

Source: Bacanora Lithium Plc    |   Ganfeng Lithium