Business
Acquisition of Brazilian Iron
Acquisition of Brazilian Iron.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n RNS Number : 1891T Anglo Pacific Group PLC 23 September 2010 \n\n \n \nNews Release\n \n23rd September 2010\n \n \nAnglo Pacific Group plc\nAgreement to Acquire Brazilian Iron Ore Production Royalty\n \n \nAnglo Pacific Group plc (\"Anglo Pacific\") (LSE: APF) (TSX: APY) is pleased to announce that, effective 22nd September 2010, it has agreed to purchase from Beadell Resources Limited (\"Beadell\") the 1.0% gross iron ore revenue royalty rights covering the Anglo American plc operated Amapá Iron Ore System as well as Beadell's mining concessions and exploration tenements in the Amapá region of northern Brazil, for a sum of A$31.25 million in cash. \n \nCompletion of the purchase is conditional on finalising the definitive documentation of the Sale and Purchase Agreement and on the execution of a Deed of Assignment, Assumption and Consent by the entities that are parties to the royalty agreement.\n \nThe Amapá Iron Ore System is majority owned by Anglo American plc (70%) with Cliff Natural Resources Inc. owning the remaining 30%. Anglo American plc acquired the Amapá Iron Ore System in 2008 as part of its US$5.5 billion cash acquisition of the Minas-Rio Iron Ore Project and the Amapá Iron Ore System. \n \nBased on Anglo American plc's disclosures the Amapá Iron Ore System commenced initial production in 2008 and started commercial production on the 1st of January 2010. Anglo American plc expects to produce 4.0Mt of sinter feed and pellet feed in 2010 from the Amapá Iron Ore System and could increase production to 6.5Mt per annum with further capital investment. \n \nAnglo Pacific has also agreed with Beadell a similar 1.0% gross iron ore revenue royalty over its mining concessions and exploration tenements which cover approximately 2,500km2 and are considered prospective for iron ore.\n \nAnglo Pacific is pleased to have agreed to purchase such a high quality iron ore production royalty which complements its existing Kestrel metallurgical coal royalty and the recently acquired Pilbara iron ore royalty as announced in May 2010.\n \n\n\nAnglo Pacific Group plc is a global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in low-cost, long-life mining assets. The Group achieves this ...