Anglo Pacific Group PLC
11 March 2008
11th March 2008
Anglo Pacific Group PLC
Acquisition of gold royalty from Kinbauri Gold Corp.
Anglo Pacific Group plc ('the Company') announces that, effective 10th March
2008, it has agreed to acquire a 2.5% net smelter return ('NSR') from Kinbauri
Gold Corp. ('Kinbauri') on Kinbauri's El Valle & Carles mines in exchange for
C$7.5m. The agreement, which is subject to legal approval, also includes a
clause increasing the NSR to 3% should the gold price exceed US$1,100 per ounce.
If production from the El Valle mill does not exceed a rate of 90,000 ounces of
gold per annum on or before 31st December 2012 the amount advanced (less amounts
already paid to the Company under the royalty) may convert into common shares of
Kinbauri at a price equal to the lower of $0.73 and the discounted market price
at the time of conversion. This conversion is at the option of the Company.
Kinbauri is a TSXV tier 1 company (TSXV: KNB) focused on the development of the
El Valle property in Asturias, Spain. The mine is scheduled to commence
production in the fourth quarter of 2010.
This acquisition marks another positive step in the Company's strategy to
broaden and diversify its portfolio of royalties.
For further information:
Anglo Pacific Group plc +44 (0) 20 7318 6360
Mr Matthew Tack
Numis Securities +44 (0) 20 7260 1000
Mr James Black
Mr John Harrison
Scott Harris +44 (0) 20 7653 0030
Mr Stephen Scott
Mr James O'Shaughnessy
Website: www.anglopacificgroup.com
This information is provided by RNS
The company news service from the London Stock Exchange