ANGLO PACIFICThis is what they do
2011-08-03 08:16 ET - News Release
Mr. Peter Boycott reports
ANGLO PACIFIC GROUP PLC: ACQUISITION OF IRON ORE ROYALTY FROM LONDON MINING
Anglo Pacific Group PLC has agreed to purchase a 1-per-cent gross revenue royalty on London Mining PLC's Isua iron ore project in Greenland for $30-million (U.S.). Anglo Pacific has entered into a royalty agreement with London Mining and its wholly owned subsidiary, London Mining Greenland A/S.
London Mining has commenced work on a feasibility study for the Isua project based on a 15-million-tonne-per-annum open-pit and processing operation with a 15-year initial mine life. Production is targeted for 2015.
The royalty agreement contains a number of trigger events, the occurrence of which will allow Anglo Pacific to convert the royalty back into the $30-million (U.S.) consideration, the satisfaction of which can be in cash or London Mining shares at London Mining's election. Trigger events include a failure to fulfill certain milestones, including the completion of a bankable feasibility study by Dec. 31, 2012, and obtaining an exploitation licence by Dec. 31, 2013.
Commenting on the acquisition, Peter Boycott, chairman of Anglo Pacific, said: "We are extremely pleased with the acquisition of the royalty on the Isua project. The acquisition enables Anglo Pacific to strengthen our focus on steelmaking raw materials, and we believe that this will deliver considerable long-term revenue growth and cash flows for the group and its shareholders. Anglo Pacific remains focused on the acquisition of royalties that will enhance the value of our royalty portfolio and will enable the group to capitalize on long-term growth in key Asian markets, as well as providing additional diversification in our exposure to key commodities."