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Anglo Pacific signs MOU with
Anglo Pacific signs MOU with.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n RNS Number : 0172Q Anglo Pacific Group PLC 27 July 2010 \n\n \n \nNews Release\n \n27th July 2010\n \nAnglo Pacific Group plc signs a Memorandum of Understanding with Horizonte Minerals plc for an option to acquire a royalty on the Araguaia and Lontra Nickel Projects in Brazil\n \nAnglo Pacific Group plc (\"Anglo Pacific\") (LSE: APF) (TSX: APY) is pleased to announce that it has signed a Memorandum of Understanding (\"MOU\") with Horizonte Minerals plc (\"Horizonte\") (AIM: HZM) for Anglo Pacific to acquire an option to purchase a Net Smelter Royalty (\"NSR\") on all revenues from the advanced exploration stage Araguaia and Lontra Nickel Projects (\"Araguaia Project\") in Brazil. The MOU is subject to contract and due diligence.\n \nUnder the MOU, Anglo Pacific will pay to Horizonte the sum of US$500,000 in exchange for an option to acquire a 1.5% NSR from the Araguaia Project. The US$500,000 will be netted off from the agreed exercise payment of US$13 million if the option is exercised in due course.\n \nThe MOU provides for an option with the following terms:-\n \n· Maturity date - six years from the date of signature of legally binding documentation.\n· Call terms - can be exercised by Anglo Pacific following notice given by Horizonte upon delivery of a JORC or NI 43-101 compliant pre-feasibility study on the Araguaia Project that confirms the project's economic viability. \n· Exercise period - the earlier of 120 days from receipt of the pre-feasibility study, or the maturity date.\n· Exercise payment - US$13 million from Anglo Pacific to Horizonte, less the US$500,000 as noted above.\n \nThe NSR would be at a rate of 1.5% on production up to 30,000tpa - reduced by 0.02% for every 1,000 tpa above this rate of production, but never reducing below 1.1%. The NSR would be payable on all revenue from the Araguaia Project (defined by licence areas).\n \nHorizonte has recently announced the acquisition of the Araguaia Nickel Project from Teck Resources Limited (\"Teck\"). After the acquisition Teck will control approximately 50% of Horizonte's outstanding share capital. The Araguaia Nickel Pr...