Anglo Pacific Group Plc

Anglo Pacific Group Plc

November 17, 2011 09:30 ET

Anglo Pacific Group PLC: Proposed transaction for Trefi Coal with Cardero Resource Corp.

LONDON, UNITED KINGDOM--(Marketwire - Nov. 17, 2011) - Anglo Pacific Group PLC ("Anglo Pacific") (TSX:APY)(LSE:APF) announces today that it has agreed to a proposal with Cardero Resource Corp. ("Cardero") for Cardero to acquire up to 100% of Trefi Coal Corporation ("Trefi"). Trefi is a wholly owned subsidiary of Anglo Pacific and holds the Trefi Coal Property in the Pine River area, northeast British Columbia, Canada.

The main terms of the proposal are as follows:

  • Cardero will be granted an option to acquire 50% of Trefi following delivery of a bankable feasibility study within four years, for total consideration of C$3.5million and 500,000 common shares of Cardero.
  • For a further payment of C$6million, Cardero will be granted an additional option to acquire the remaining 50% of Trefi, following a decision to mine.
  • Anglo Pacific will retain a 3% gross revenue royalty over the project.
  • Cardero will issue 1 million warrants to Anglo Pacific exercisable at C$1.40 per share for a period of 18 months.
  • The proposed transaction is subject to settlement and execution of formal documentation and the approval of the Toronto Stock Exchange.

Commenting on this transaction, John Theobald, Chief Executive Officer of Anglo Pacific, said:

"Anglo Pacific is very pleased to be working with Cardero on the development of Trefi. Cardero brings extensive operating coal expertise gained in British Columbia and this project will complement Cardero's development of its nearby Carbon Creek metallurgical coal property. We will receive an upfront cash payment recognizing the work and expense to date on Trefi and will hold a valuable royalty over the life of the project."

Notes to editors:

Anglo Pacific Group PLC ("Anglo Pacific") is a global natural resources royalties company. The strategy of Anglo Pacific 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.

Cardero Resource Corp. ("Cardero"), headquartered in Vancouver, British Columbia strives to maximize shareholder value by utilizing management's strong regional network and geological and operational expertise to implement the most economically sound and environmentally friendly approach to building its business. Cardero's focus has been on bulk commodities and includes a 75% interest in the Carbon Creek Metallurgical Coal deposit in northeastern British Columbia and the right to acquire a 90% interest in the Sheini Hills Iron Ore project in Ghana.

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, 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
    John Theobald, Chief Executive Officer
    Chris Orchard, Chief Investment Officer
    +44 (0) 20 3435 7400

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

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