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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, ramping up to 35,000 tpa in Stage 2 (schedule to commence in year five of the mine plan). Bacanora Lithium has indicated first production is expected in H2 2023 and that Ganfeng is currently evaluating the potential for a larger Stage 1 production profile. Sonora 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