LONDON (Alliance News) - Anglo Pacific Group PLC on Wednesday noted the announcement released by fellow London-listed Berkeley Energia PLC earlier this week regarding a USD10.0 million funding package, saying its royalty interest in Berkeley's operations now have a value of USD13 million.
Anglo Pacific is invested at a corporate level in Berkeley Energia, which on Tuesday announced it had secured a USD10.0 million cash injection from one of its other major shareholders.
Resource Capital Funds, which holds a 7.2% stake in Berkeley Energia, is providing USD5.0 million to the business by acquiring around 15.6 million new shares in Berkeley Energia priced at 32.0 pence each.
The other USD5.0 million will be generated by Berkeley Energia selling a 0.375% net smelter royalty over the Salamanca project to Resource Capital Funds, as Berkeley Energia tries to minimise dilution to its other shareholders, such as Anglo Pacific.
The shares to be issued to Resource Capital Funds represent around 9.0% of the company's issued share capital prior to the shares being issued.
Anglo Pacific Group on Wednesday confirmed it currently holds 30.3 million shares in Berkeley Energia, implying it has a 16.8% stake.
Notably, Anglo Pacific also holds a 1% net smelter royalty interest over all of the production to come from Berkeley Energia's operations in Spain and Portugal after paying AUD4.1 million for the royalty way back in 2009.
"We are encouraged by this financing event, which implies a USD13 million valuation of Anglo Pacific's existing 1% NSR royalty, a multiple of our asset value, and also minimises shareholder dilution," said Julian Treger, chief executive of Anglo Pacific.
The USD10.0 million injection into Berkeley Energia will be used to progress exploration programmes and conduct some major infrastructure work, bridging the funding gap whilst Berkeley Energia secures the main development financing for the Salamanca project in Spain later this year.
"We look forward to Berkeley undertaking initial infrastructure development, and ultimately to first production at Salamanca," said Treger.
Anglo Pacific shares were up 0.6% to 73.65 pence per share on Wednesday. Berkeley Energia shares were trading flat in London at 30.50p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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