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Anglo Pacific Group PLC: Acquisition of Iron Or...
Anglo Pacific Group PLC: Acquisition of Iron Or....
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \n\nNews Release\n\nAugust 3, 2011\n\n Anglo Pacific Group PLC\n Acquisition of Iron Ore Royalty from London Mining\n\nAnglo Pacific Group PLC (\"Anglo Pacific\", the \"Group\") (LSE: APF) (TSX: APY) announces today that it has agreed to\npurchase a 1% gross revenue royalty on London Mining PLC's (\"London Mining\") Isua iron ore project in Greenland\nfor US$30 million. Anglo Pacific has entered into a royalty agreement with London Mining and its wholly-owned\nsubsidiary, London Mining Greenland A/S (\"London Mining Greenland\").\n\nLondon Mining has commenced work on a feasibility study for the Isua project based on a 15Mtpa open pit and\nprocessing operation with a 15-year initial mine life. Production is targeted for 2015.\n\nThe royalty agreement contains a number of trigger events, the occurrence of which will allow Anglo Pacific to\nconvert the royalty back into the US$30 million consideration, the satisfaction of which can be in cash or London\nMining shares at London Mining's election. Trigger events include a failure to fulfil certain milestones,\nincluding the completion of a bankable feasibility study by 31 December 2012 and obtaining an exploitation licence\nby 31 December 2013.\n\nCommenting on the acquisition, Peter Boycott, Chairman of Anglo Pacific, said:\n\n\"We are extremely pleased with the acquisition of the royalty on the Isua project. The acquisition enables Anglo\nPacific to strengthen our focus on steel making raw materials and we believe that this will deliver considerable\nlong term revenue growth and cash flows for the Group and its shareholders. Anglo Pacific remains focussed on the\nacquisition of royalties that will enhance the value of our royalty portfolio and will enable the Group to\ncapitalise on long term growth in key Asian markets, as well as providing additional diversification in our\nexposure to key commodities.\"\n\nFor further information:\n\nAnglo Pacific Group PLC +44 (0) 20 3435 7400\n\nPeter Boycott, Chairman\nJohn Theobald, Chief Executive Officer\nMatthew Tack, Finance Director\n\nWebsite: www.anglopacificgroup.com\n\nLiberum Capital +44 (0) 20 3100 2000\n\nChris Bowman\nChristopher Kololian\n\nPelham Bell Pottinger +44 (0) 20 7861 3232\n\nLorna Spears\nJames MacFarlane\n\nNotes to editors:\n\nAnglo Pacific Group PLC is a global natural resources royalties company. The strategy...