Anglo Pacific Group Plc
LSE : APF
TSX : APY

August 02, 2011 08:00 ET

Anglo Pacific Group PLC: Acquisition of Chromite Royalty from KWG Resources Inc.

LONDON, UNITED KINGDOM--(Marketwire - Aug. 2, 2011) - Anglo Pacific Group PLC ("Anglo Pacific", the "Group") (LSE:APF)(TSX:APY) is pleased to announce the purchase of 7207565 Canada Inc. from KWG Resources Inc. for US$18 million. 7207565 Canada Inc. owns a 1% net smelter royalty interest in the Black Thor, Black Label and Big Daddy chromite deposits, owned and operated by Cliffs Natural Resources, in the Ring of Fire region of Northern Ontario, Canada.

Cliffs Natural Resources ("Cliffs") is currently undertaking an environmental assessment for Black Thor as part of its project development plans, and once constructed anticipates the production of ore for both direct sale and integrated ferrochrome production. Cliffs has also announced a commitment to engage with First Nations communities affected by the development to ensure the creation of opportunities for enhanced social wellbeing and economic prospects for those communities.

Commenting on the acquisition, Peter Boycott, Chairman of Anglo Pacific, said:

"Anglo Pacific is pleased to have agreed the acquisition of another high quality royalty on a project in Canada being developed by an internationally recognised operator. The acquisition fits well with our strategy for growth and demonstrates strong synergies with our existing royalty portfolio which has a significant focus on steel making raw materials. The Group anticipates that the royalties from these chromite deposits, the largest known deposits of chromite ore in North America, will provide long term cash flows and continuing revenue growth for shareholders."

Notes to editors:

Anglo Pacific Group PLC is a global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in low-cost, long-life mining assets. The Group achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Group to pay a substantial proportion of these royalties to shareholders as dividends.

The Ring of Fire has attracted a lot of attention in the Canadian market in recent years and a significant effort is being made to open this area to mining. At the unveiling of the Open Ontario Plan in March 2010, the Premier of Ontario described it as "the most promising mining opportunity in Canada in a century", and went on further to say that "your government is fully committed to working with northerners, Aboriginal communities and mining partners to fully realize the Ring of Fire's potential".

Important notice

This news release contains forward-looking statements based on assumptions and reflects Anglo Pacific's expectations, estimates and projections of future events as of the date of this release. Forward-looking statements include, without limitation, statements regarding the performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of Anglo Pacific. Often, but not always, forward-looking statements can be identified by the use of words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based upon certain material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by Anglo Pacific in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Also, forward-looking statements involve known and unknown risks, uncertainties and other factors that are beyond the Company's control and which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such material factors and assumptions and risks and uncertainties include, among others, those described in the Company's annual information form dated as at June 29, 2010 (available on Anglo Pacific's website and at www.sedar.com), which are incorporated by reference into this release and qualify any and all forward-looking statements made in this release.

Although Anglo Pacific has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements herein relate only to events or information as of the date on which the statements are made and, except as specifically required by law, Anglo Pacific undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise.

Contact Information

  • Anglo Pacific Group PLC
    Peter Boycott
    Chairman
    +44 (0) 20 3435 7400

    Anglo Pacific Group PLC
    John Theobald
    Chief Executive Officer
    +44 (0) 20 3435 7400

    Anglo Pacific Group PLC
    Matthew Tack
    Finance Director
    +44 (0) 20 3435 7400
    www.anglopacificgroup.com

    Liberum Capital
    Chris Bowman
    +44 (0) 20 3100 2000

    Liberum Capital
    Christopher Kololian
    +44 (0) 20 3100 2000

    Pelham Bell Pottinger
    Lorna Spears
    +44 (0) 20 7861 3232

    Pelham Bell Pottinger
    James MacFarlane
    +44 (0) 20 7861 3232