@ Pavel

PFS - Thacker Pass

Royalties, Rights and Payments

In addition to the Uranium Royalty and those national, state and local rates identified in Section 4.3 of this report, the Thacker Pass Property is subject to a royalty with the Orion Mine Finance Fund I (f.n.a. RK Mine Finance [Master] Fund II L.P.) (Orion). It is a gross revenue royalty on the Thacker Pass Property in the amount of 8% of gross revenue until aggregate royalty payments equal US$22 Million have been paid, at which time the royalty will be reduced to 4.0% of the gross revenue on all minerals mined, produced or otherwise recovered. LNC can at any time elect to reduce the rate of the royalty to 1.75% on notice and payment of US$22 Million to Orion.

Trident's explanation for why Orion sold their royalty https://www.youtube.com/watch?v=cwuzpsyw9XM&t=225s

My discounted cashflow model puts the NPV of the 1.75% royalty and one-time payment at around $100 million assuming $12,000/ton LCE and a discount rate of 10%. I'd say Trident got a steal, not counting the growth potential for Thacker Pass.  

AXP