Business
Divestment of Narrabri thermal coal royalty
Divestment of Narrabri thermal coal royalty.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0663P\n Anglo Pacific Group PLC\n 14 October 2021\n \n \n \n \n \n \n \n \n \n \n \n News Release\n \n \n \n \n \n \n \n \n 14 \n October 2021\n \n \n \n \n \n \n \n \n \n \n \n \n Anglo Pacific Group PLC\n \n \n Divestment of Narrabri thermal coal royalty for consideration of up to $36 million\n \n \n \n \n \n Anglo Pacific Group PLC (\"Anglo Pacific\" the \"Company\" or the \"Group\") (LSE: APF, TSX: APY) is pleased to announce its exit from thermal coal by entering into an agreement to sell its 1% gross revenue royalty over the Narrabri mine to the operator, Whitehaven Coal Limited (\"Whitehaven\") for consideration of up to $36 million. \n \n \n \n \n \n The consideration is structured as fixed payments totalling $21.6 million, along with contingent payments which could generate a further $\n 14 \n million. The transaction is expected to close on 31 December 2021, with no material conditions precedent to closing. Anglo Pacific will continue to receive royalties from Narrabri until the end of the current calendar year.\n \n \n \n \n \n This transaction significantly improves the Group's carbon footprint with a remaining portfolio of assets now increasingly weighted towards cobalt, vanadium, copper and nickel - commodities which will be essential to decarbonise energy generation in the years ahead.\n \n \n \n \n \n Highlights\n \n \n \n \n \n · \n $21.6 million fixed consideration, to be received in instalments until 31 December 2026, of which ~$13 million will be received within 18 months of the transaction close date \n \n \n · \n Contingent consideration of a further estimated $14 million depending on future coal price levels, Narrabri sales volumes and the successful permitting of the Narrabri South extension\n \n \n · \n H2 2021 Narrabri royalty income estimated at $1 - 2 million to be paid to Anglo Pacific, a period which is seeing elevated thermal coal prices\n \n \n · \n Increases Anglo Pacific's portfolio contribution from 21st century commodities that support a more sustainable world\n \n \n · \n Provides Anglo Pacific with the opportunity to redeploy capital into further acquisitions \n \n \n \n \n \n Anglo Pacific CEO, Julian Treger, commented: \n \n \n \n \n \n \"I am delighted...