Business
Proposed Acquisition, Equity Placing & Refinancing
Proposed Acquisition, Equity Placing & Refinancing.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \nRNS Number : 6727V Anglo Pacific Group PLC 01 February 2017 \n\n\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (AS AMENDED).\n\nTHIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN, SOUTH AFRICA, OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.\n\n \n \nThis Announcement should be read in its entirety. In particular, you should read and understand the information provided in the “Important Information on the Placing for Invited Placees Only” section of this Announcement.\n \n \nNews Release\n \n1 February, 2017\n \nAnglo Pacific Group PLC\nProposed Acquisition, Equity Placing and Refinancing\n \nAnglo Pacific Group PLC (\"Anglo Pacific\", the \"Company\") (LSE: APF, TSX: APY) is pleased to announce that it has entered into a conditional financing agreement relating to the portion of the toll milling proceeds from the McClean Lake Mill attributable to Toronto Stock Exchange listed Denison Mines Inc. (\"Denison\") together with an associated conditional streaming agreement, for total cash consideration of C$43.5 million (£26.4 million).\n \nThe McClean Lake Mill, operated by AREVA Resources Canada Inc, (\"ARC\"), receives all of the output from the Tier 1 Cigar Lake uranium (\"U3O8\") mine, (\"Cigar Lake\"), operated by Cameco Corporation (\"Cameco\"). Denison is entitled to 22.5 per cent. of the proceeds from the mill, which earns toll revenue on each pound of U3O8 that it processes. Anglo Pacific is entitled to payment in respect of toll milling revenues backdated to July 1, 2016. \nThe Denison Financing is structured as: (i) an initial C$40.8 million (£24.8 million) 13-year loan with an interest rate of 10 per cent. per annum payable to Anglo Pacific; and (ii) the acquisition of a right to receive Denison's portion of the toll milling proceeds from the McClean Lake Mill after the first 215 Mlbs of throughput, for an upfront payment of C$2.7 million (£1.64 million) \nThe Denison Loan is payable quarterly in cash and is structured so as to entitle Anglo Pacific to accelerated repayments of the loan principal when toll revenues ex...