Deterra Announces $0.09 Dividend, Signals Further Growth in Income with Thacker Pass Catalysts
Deterra Resource Corp. (the "Company" or "Deterra"), a subsidiary of Alderon Iron Ore Corp. (TSXV: ADV), is pleased to announce that its Board of Directors has declared a dividend of $0.09 per share, payable on June 15, 2023, to shareholders of record as of June 1, 2023. This dividend payment is a testament to the Company’s strong financial position and confidence in its future growth prospects.
The announcement comes as Deterra prepares to leverage the upcoming development of the Thacker Pass nickel mine in East Winnemucca, Nevada, which is expected to become one of the largest nickel-producing mines in the United States. The mine’s construction is expected to begin this year, with production scheduled to commence in 2024.
The Thacker Pass project, which was acquired by Deterra in 2020, boasts a significant resource base of over 1.1 billion grams of nickel, 430,000 ounces of gold, and 11.5 million pounds of copper. The project’s total estimated life-of-mine production is estimated to be over 36,000 tonnes of nickel, 13,000 ounces of gold, and 313,000 pounds of copper.
"This dividend payment reflects our commitment to maximizing value for our shareholders while we progress the Thacker Pass project, which is poised to become a significant source of cash flow for the Company," said Deterra’s CEO, Fraser Smith. "As we move forward, we are optimistic about the demand for nickel and other metals in the years to come, driven by the increasing demand for electric vehicles and renewable energy infrastructure. We believe the Thacker Pass project is well-positioned to benefit from this growth and make a meaningful contribution to the Company’s financial performance."
The dividend payment is expected to be funded from the Company’s existing cash reserves, which stood at approximately $15 million as of March 31, 2023. Deterra’s financial position is expected to be further bolstered by the project’s growing cash flow as production ramp-up begins at Thacker Pass.
The Company’s Board of Directors has also elected to maintain its regular dividend policy, with a target of delivering an 8% to 12% dividend yield to investors on an annual basis. This policy is designed to provide shareholders with a reliable and growing source of income, while also reflecting the Company’s confidence in its future financial performance.
"We believe that our dividend policy signals our commitment to delivering value to shareholders while maximizing the potential of our assets," added Smith. "As we look to the future, we are excited about the opportunities ahead, and we are confident that our dividend will continue to be a key differentiator in our investors’ portfolios."
The Company’s dividend payment is subject to certain customary conditions, including the approval of the TSX Venture Exchange. Shareholders are advised to consult their brokers or financial advisors for further information on the dividend payment.
About Deterra Resource Corp.
Deterra Resource Corp. is a TSXV-listed company focused on the exploration and development of high-quality mineral projects. The Company’s flagship asset is the Thacker Pass nickel project, which is located in East Winnemucca, Nevada, and is poised to become one of the largest nickel-producing mines in the United States. Deterra is committed to delivering long-term value to its shareholders through strategic growth, operational excellence, and commitment to sustainability.
