On 19 February, Trident Royalties, a mining investment firm that finances projects in exchange for revenue-based royalty payments, has announced an extension to its agreement regarding the Sonora Lithium Project in Mexico.
The Sonora project is owned by Ganfeng Lithium and is currently undergoing a series of litigation arguments concerning mining concessions with the Mexican government.
Mexican mining authorities have notified Ganfeng's local subsidiaries that nine of its concessions had been canceled because it had failed to comply with minimum investment requirements. In last November, the Sonora project executives said the project is paused indefinitely until the issues with the government are resolved, according to Reuters.
The joint venture of Trident Royalties, Sonoroy Holdings Limited, is to acquire a 3.0% Gross Revenue Royalty on the Sonora project. This extension of paying a fraction of the revenue stream pushes the deadline to 31 December 2026, allowing more time to navigate through ongoing legal and regulatory challenges.
Trident Royalties expresses the confidence towards the Sonora project's long-term significance and potential in renewable energy industry, trusting that the litigation can be resolved. Its extended involvement in the Sonora Lithium Project reflects a relatively optimistic outlook for Ganfeng’s production potential in Mexico. The project has a 20,000 tonnes of lithium hydroxide producing capacity in the first phase according to Ganfeng’s initial plan.
