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Anglo Pacific Group PLC: Royalty Update: Salamanca

T.ECOR

http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=1258492&ProfileId=051205&sourceType=1

LONDON, UNITED KINGDOM -- (Marketwired) -- 05/11/16 -- Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF) (TSX: APY) is pleased to announce that Berkeley Energia Limited ("Berkeley") has entered into a US$10 million financing package with Resource Capital Funds, a significant Berkeley shareholder. The financing comprises the issue of US$5 million of Berkeley ordinary shares at a premium to the 10-day and 30-day VWAP, and US$5 million for a 0.375% net smelter return ("NSR") royalty over the Salamanca project.

In December 2009, Anglo Pacific acquired a 1% NSR royalty applicable to production from Berkeley's Spanish and Portuguese assets for A$4.1 million which continues to be its carrying value. Anglo Pacific holds 30.3 million Berkeley ordinary shares.

Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
"We are encouraged by this financing event, which implies a ~US$13 million valuation of Anglo Pacific's existing 1% NSR royalty, a multiple of our asset value, and also minimises shareholder dilution. We look forward to Berkeley undertaking initial infrastructure development, and ultimately to first production at Salamanca."

Notes to Editors

About Anglo Pacific
Anglo Pacific Group PLC is a global natural resources royalty company. The Company's strategy is to develop a leading international diversified royalty company with a portfolio centred on base metals and bulk materials, focusing on accelerating income growth through acquiring royalties on projects that are currently cash flow generating or are expected to be within the next 24 months. It is a continuing policy of the Company to pay a substantial portion of these royalties to shareholders as dividends.

For further information:

Anglo Pacific Group PLC
Julian Treger
Chief Executive Officer
Kevin Flynn
Company Secretary & Chief Financial Officer
+44 (0) 20 3435 7400
Website:
www.anglopacificgroup.com

Bell Pottinger
Nick Lambert / David Bass / Richard Crowley
+44 (0) 20 3772 2500

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