Anglo Pacific Group Plc
LSE : APF
TSX : APY

August 03, 2011 08:00 ET

Anglo Pacific Group PLC: Acquisition of Iron Ore Royalty from London Mining

LONDON, UNITED KINGDOM--(Marketwire - Aug. 3, 2011) - Anglo Pacific Group PLC ("Anglo Pacific", the "Group") (LSE:APF)(TSX:APY) announces today that it has agreed to purchase a 1% gross revenue royalty on London Mining PLC's ("London Mining") Isua iron ore project in Greenland for US$30 million. Anglo Pacific has entered into a royalty agreement with London Mining and its wholly-owned subsidiary, London Mining Greenland A/S ("London Mining Greenland").

London Mining has commenced work on a feasibility study for the Isua project based on a 15Mtpa 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 US$30 million consideration, the satisfaction of which can be in cash or London Mining shares at London Mining's election. Trigger events include a failure to fulfil certain milestones, including the completion of a bankable feasibility study by 31 December 2012 and obtaining an exploitation licence by 31 December 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 steel making 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 focussed on the acquisition of royalties that will enhance the value of our royalty portfolio and will enable the Group to capitalise on long term growth in key Asian markets, as well as providing additional diversification in our exposure to key commodities."

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.

London Mining PLC is focused on identifying, developing and operating scalable mines to become a mid-tier supplier to the global steel industry. London Mining is developing three iron ore mines in Sierra Leone, Saudi Arabia and Greenland as well as a coking coal operation in the Socha region of Colombia. All London Mining's assets have deliverable production with potential for expansion. London Mining is currently listed on the AIM in London and Oslo Axess and trades under the symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg). London Mining's shares will be delisted from Oslo Axess on 3 October 2011.

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