Anglo Pacific Group PLC: Royalty Update: Groundhog Anthracite Project
LONDON, UNITED KINGDOM--(Marketwired - Apr 1, 2016) - Anglo Pacific Group PLC (TSX: APY) (LSE: APF)
TSX: APY
News Release
April 1, 2016
Anglo Pacific Group PLC
Royalty Update: Groundhog Anthracite Project
Anglo Pacific Group PLC ("Anglo Pacific", or the "Company") (LSE: APF, TSX: APY), the London and Toronto listed royalty company, is pleased to announce that it has now settled the outstanding amount due under its promissory note receivable from Atrum Coal Groundhog Inc and its parent company, Atrum Coal NL (together "Atrum") (the "Promissory Note"). The Promissory Note was issued as part consideration for the sale of the Company's coal licences in September 2014, and subsequently extended in September 2015.
The remaining outstanding balance of US$1.4 million (including principal and accrued interest) has been settled by way of US$0.6 million in cash along with the issue of a new royalty as follows:
- 0.5% gross revenue royalty ("GRR") over all production within Atrum's Groundhog Anthracite Project ("Groundhog") tenements for a period of ten years from the date that Atrum declares commercial production on the project; and subsequently
- 0.1% GRR from production within the Groundhog North Mining Complex project area.
Anglo Pacific will continue to retain the higher of a 1% GRR or US$1.00/t royalty on the areas of Groundhog that Atrum acquired from Anglo Pacific in 2014.
Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
"We are pleased to have recovered the full value of our outstanding promissory note, and in the process increased our royalty exposure to Atrum's high quality anthracite project. We look forward to the project progressing into production."
For further information:
| Anglo Pacific Group PLC Julian Treger, Chief Executive Officer Kevin Flynn, Chief Financial Officer | +44 (0) 20 3435 7400 |
| Bell Pottinger Nick Lambert / David Bass / Richard Crowley | +44 (0) 20 3772 2500 |
Notes to Editors
About Anglo Pacific
Anglo Pacific Group PLC is a global natural resources royalty company. The Company's strategy is to develop a leading international diversified royalty company with a portfolio centred on base metals and bulk materials, 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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