Trident Royalties PLC (AIM:TRR) welcomed the progress made at the Thacker Pass lithium project in Nevada, US, in which it holds a 60% interest in a gross revenue royalty,
Lithium Americas Corp (TSX:LAC, NYSE:LAC) (LAC), the owner of the project, provided an update alongside its third-quarter financial results. Thacker Pass is the largest known lithium resource in the US.
The Nevada Department of Environmental Protection made a preliminary determination last month to issue three remaining key state permits: Water Pollution Control Permit, Mine Reclamation Permit and Class II Air Permit.
A hearing date is set for the first quarter of 2022 following which early-works construction is expected to start in the first half.
"This latest update from Lithium Americas highlights continued progress at Thacker Pass, with a positive preliminary determination having been issued for the remaining three key state permits,” said Trident chief executive Adam Davidson.
LAC reiterated that Phase 1 of the feasibility study will target 40,000 tonnes per annum (tpa) lithium carbonate equivalent (LCE), up from a target of 30,000-35,000tpa set out in the pre-feasibility study, with a potential Phase 2 expansion scenario to target total capacity of 80,000tpa, up from the original 60,000tpa target.
READ: Trident Royalties hails doubling of mineral resource estimate for Nevada lithium project
“The increase in project scale is significant for Trident's royalty which, at current LCE spot prices and following an expected US$13.2mln partial buy-back payment to Trident, would see the royalty pay +US$11mln per year on the Phase 1 production profile and +US$23mln per year on the Phase 2 production profile," said Davidson.