Trident Royalties has accepted a £144m acquisition offer from Australian mining firm, Deterra.

The offer represents a 22.5% premium on Trident’s share price yesterday, while also being 42% above the market price in April when Deterra made its first proposal of 44 pence a share in April.

In a joint statement by the firms, Deterra said that the offer represents an "attractive opportunity" for the company to "accelerate its growth strategy and create value for its shareholders".

Furthermore, it said that it was looking to build a diversified royalty portfolio, with the aim to create "strong and resilient cash flows", "multiple sources of earnings growth over time", and "leverage to Deterra’s scalable operating cost structure".

Since its inception in June 2020, mining royalties firm Trident said it had sought to create shareholder value through the acquisition of "high quality assets", taking on 21 in this time.

However, it said that it recognised that there are risks associated with unlocking value as an independent business and said that following regular communication with shareholders, many would welcome the opportunity for a liquidity event.

For those that invested at the time of Trident’s IPO, the deal represents a 145 pence per share premium.

Managing director at Deterra, Julian Andrews, said: "I believe the offer provides an attractive outcome for shareholders of both Deterra and Trident. It is a positive step in the execution of Deterra's growth strategy by adding quality assets to our current portfolio.

"For Trident shareholders it offers the certainty of a cash return at a significant premium and access to liquidity not available in recent trading. We welcome the support for the offer of both the Trident board and key shareholders representing 28.7% of Trident's issued capital."

Non-executive chair at Trident, Peter Bacchus, added: "Since its inception in June 2020, Trident has built shareholder value through the acquisition of high-quality royalties and now holds a diversified portfolio of 21 assets, including the flagship Thacker Pass lithium royalty. While the Trident board remains confident in Trident's ability to succeed as an independent business and to continue delivering strong results and growth in the future, the offer from Deterra offers Trident shareholders both liquidity and an immediate cash premium.

"As such, it presents an opportunity for our shareholders to accelerate and de-risk the recognition of Trident's potential future value creation, and realise a certain cash exit for their investment."

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