Anglo Pacific Group PLC
TSX : APY
LSE : APF

Anglo Pacific Group PLC

February 06, 2012 09:30 ET

Anglo Pacific Group PLC: Proposed Transaction for the Acquisition of 50% of the Mount Ida Magnetite Royalty from Red Rock Resources PLC

LONDON, ENGLAND--(Marketwire - Feb. 6, 2012) - Anglo Pacific Group plc ("Anglo Pacific") (TSX:APY)(LSE:APF) announces that it has agreed to a proposal with Red Rock Resources plc to acquire 50% of the Mount Ida 1.5% Gross Revenue Iron Ore Royalty (GRR) currently held by Red Rock Resources plc.

The acquisition will total US$14 million paid in three instalments as follows:

  • Tranche 1: US$6 million on completion and agreement of the terms of the transaction, for a 0.3% GRR.
  • Tranche 2: US$4 million payment for a further 0.225% GRR following the results of a positive definitive feasibility study (DFS), a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for.
  • Tranche 3: US$4 million for a further 0.225% GRR following the commencement of commercial production, taking the total to 0.75% GRR.

The payments are to be made in a combination of cash and Anglo Pacific shares to be determined, subject to settlement and execution of formal documentation, and approval of the London and Toronto Stock Exchanges.

The Mount Ida magnetite project is located in Western Australia and is being developed by Jupiter Mines Limited (ASX:JMS). The project has a maiden JORC compliant inferred resource of 530 million tonnes at 31.94% Fe, as announced by Jupiter Mines Limited on 19th January 2011. A scoping study was completed in March 2011 outlining an operation that would produce 10 million tonnes per annum of magnetite concentrate grading +68% Fe, transported along the existing railway from Menzies to Port Esperance on Western Australia's south coast. A feasibility study is underway for completion by the end of this year.

Notes to editors:

About Anglo Pacific Group plc

Anglo Pacific (http://www.anglopacificgroup.com) is a global natural resources royalties company. Anglo Pacific's strategy is to expand its mineral royalty interests in low-cost, long-life mining assets. Anglo Pacific achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of Anglo Pacific to pay a substantial proportion of these royalties to shareholders as dividends.

About Jupiter Mines Limited

Jupiter Mines Limited (ASX:JMS) (http://www.jupitermines.com/) is a development company with a number of assets including its Central Yilgarn iron ore projects. The company is headed up by Brian Gilbertson as non-Executive Chairman and Richard Mehan as Managing Director. Major shareholders include Pallinghurst and South Korean steel major POSCO.

About Red Rock Resources plc

Red Rock Resources plc (LSE:RRL) ( http://www.rrrplc.com/) is a mineral exploration company focussed on the discovery and development of gold, iron ore and other materials and has a long association with Jupiter Mines. The company is involved in projects in Greenland, Australia, Kenya, Malawi, Paraguay and Colombia and is headed up by Andrew Bell as Executive Chairman

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
    www.anglopacificgroup.com

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

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