Anglo Pacific Group PLC: Disposal of Panorama Coal Project
28.08.2014 | Marketwire
LONDON, UNITED KINGDOM -- (Marketwired - Aug 28, 2014) Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (LSE: APF, TSX: APY) is pleased to announce that it has entered into a definitive agreement with Atrum Coal NL ("Atrum Coal") (ASX: ATU) to sell its interest in the Panorama Coal Project. The total consideration comprises US$500,000 cash payable to Anglo Pacific on completion, together with 1,000,000 Atrum shares and a deferred consideration of US$2.0m in the form of a 12-month promissory note with an interest coupon of 8%. In addition, the Company will retain a royalty on coal sales from the assets being sold equivalent to the higher of 1% of gross revenue on a "mine gate" basis or US$1/tonne. Completion is anticipated to occur by September 2, 2014.The Panorama Coal Project lies approximately 15km west of Atrum Coal's Groundhog Anthracite Project in British Columbia, Canada and is believed to have anthracite-bearing potential.
Anglo Pacific continues to monetise non-core equity investments in order to realise cash for investment into royalty deals. A further update is provided in the H1 2014 interim results announcement on August 28, 2014.
Commenting on the transaction, Julian Treger, Chief Executive Officer of Anglo Pacific, said:
"This transaction is consistent with Anglo Pacific's strategy of monetising equity investments and growing our portfolio of royalties. We look forward to working with the Atrum Coal management team on the development of these coal properties in Canada."
For further information:
Anglo Pacific Group PLC
+44 (0) 20 3435 7400
Julian Treger - Chief Executive Officer
Mark Potter - Chief Investment Officer
Peter Mason - Company Secretary
Website: www.anglopacificgroup.com
Bell Pottinger +44 (0) 20 3772 2500
Nick Lambert / Lorna Cobbett
Notes to Editors
About Anglo Pacific
Anglo Pacific is a global mining royalty company. The Company's strategy is to create the premier base metals and bulk materials listed royalty company, 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.
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