Trident Royalties has released an update on the Thacker Pass lithium project located in Nevada. Trident holds a gross revenue royalty over Thacker Pass.
Thacker Pass is the largest know deposit of lithium in the United States and construction is well underway with the expectation production commences in 2026.
Operator Lithium Americas have started early works at Thacker Pass including water pipelines, construction ponds, site fencing and access roads. Major earthworks are expected to commence later this year.
In addition, the United States Department of the Interior has recently announced analysis on the Thacker Pass project consistent with previous solicitor’s opinion which increases the certainty over the future of the project.
Trident holds a 60% royalty over the entire Thacker Pass project. There is the option for Lithium Americas to exercise a partial buyback of the royalty which will result in a $13.2 million consideration attributable to Trident Royalties. Trident would retain a 1.05% gross revenue royalty over the project.
“It is encouraging to see tangible progress being made by the US Government to provide permitting clarity for mine developers, and the references to Thacker Pass reinforce its strategic importance to the United States,” said Adam Davidson, Chief Executive Officer of Trident.
“The BLM record update, which the US DOI confirms is consistent with the new Opinion, is a key deliverable following the February 2023 ruling and provides even further clarity on Thacker Pass’ pathway to production, for which LAC is targeting H2 2026.”
Trident Royalties shares jumped over 4% on the news on Thursday.