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Royalty Acquisition on Nickel-Cobalt Project
Royalty Acquisition on Nickel-Cobalt Project.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \nRNS Number : 7023Q Anglo Pacific Group PLC 14 September 2017 \n\n \nNews Release\n \n14 September, 2017\n \n \nAnglo Pacific Group PLC\nAcquisition of a royalty on the Piauí Nickel - Cobalt Project\n \nAnglo Pacific Group PLC (\"Anglo Pacific\", the \"Company\") (LSE: APF, TSX: APY) is pleased to announce that it has entered into an agreement with Brazilian Nickel Limited, (\"BRN\") to acquire a Gross Revenue Royalty (\"GRR\", the \"Royalty\") interest for the development of its Piauí Nickel - Cobalt Project (the \"Project\"), located in north eastern Brazil. This is in line with the Company's strategy to invest in development opportunities with significant growth potential to complement its existing portfolio of income producing assets.\n \nThe Piauí Nickel - Cobalt Project has a JORC compliant Measured Resource (1) of 52.9 Mt at 1.03% Nickel (\"Ni\") and 0.05% Cobalt (\"Co\"), plus Indicated Resources of 19.3 Mt at 0.92% Ni and 0.05% Co at a 0.6% nickel cut-of-grade.\n \nAnglo Pacific will provide BRN with an initial US$2 million (£1.5 million) cash payment payable immediately, in exchange for a 1% GRR over the Project. The Tranche 1 consideration and associated expenses will be funded from internal sources. \n \nThis consideration will be used by BRN for further Project assessment and/or the development of the \"PNP1000\", a Ni and Co pilot plant with a nameplate production capacity of 1,000 tonnes per annum (\"tpa\") of Ni contained in a saleable product.\n \nUpon achievement of certain development milestones and Anglo Pacific board approval for each specific tranche, the Company has the right to acquire up to a total of US$70m (~£53m) in additional GRRs, namely:\n \n· Under a staged ramp-up development scenario: US$20m for an incremental 2.0% GRR when plans for the construction of a processing plant with a nameplate capacity of up to 10,000 tonnes of Ni and 450 tonnes of Co per annum (the \"PNP10k\") are implemented, and an additional US$50m for an incremental 2.5% GRR when plans for the construction of a processing plant with a nameplate capacity of 24,000 tonnes of Ni and 1,000 tonnes of Co per annum (the \"PNP24k\") are implemented, OR:\n· US$70m for an incremental 3.0% GRR at the point when plans...