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, which is conditional upon 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.

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.