Regal, Tribeca-backed Trident Resources mulls spearing the ASX

There could be a new type of mining exposure heading Down Under before too long.

Street Talk understands London-listed Trident Resources – a creation of Aussie firms Ashanti Capital and Azure Capital and UK-based broker Tamesis Partners – is tossing up an ASX listing after a bunch of local funds tipped into its capital raising last week.

Trident was set up to offer its investors exposure to mining royalties and streams. Investing in a royalty provides an exposure to a percentage of revenue or profit from a producing resources asset while a stream grants the buyer a percentage of the resource produced.

The company just closed a £16 million ($30 million) placement to fund the purchase of its first royalty from a Mineral Resources-owned iron ore mine in Western Australia that should generate $3 million cash flow each year.

Investment in the raising was spearheaded by George Long’s LIM Asia fund in Hong Kong and backed by Aussie institutions Regal Funds Management, Tribeca Investment Partners and Sydney-based Terra Capital.

It is understood London-listed investor Metal Tiger also tipped in, as well as Aussie Quentin Flannery, son of Felix Resources managing director and mining bigwig Brian Flannery.

The strong Aussie uptake of the offer and the expectation that Trident will add more Australian-based mining royalties to its portfolio has got its management – led by former Resource Capital Funds operatives Adam Davidson and Tyron Rees – thinking about an ASX listing down the track.

The news comes about six months after it was revealed Gresham Partners and Regal had teamed up to seed another royalties investment fund that was expected to raise about $150 million.

Trident's placement was priced at 20 pence a share and overseen by Ashanti, Azure and Tamesis. It will be called Trident Royalties upon relisting.

The company is listed on the London Stock Exchange but intends to move to AIM, a sub-market of the LSE aimed at smaller, growing companies.

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