23 Sep 2010 11:41
News Release
23rd September 2010
Anglo Pacific Group plc
Agreement to Acquire Brazilian Iron Ore Production Royalty
Anglo Pacific Group plc ("Anglo Pacific") (LSE: APF) (TSX: APY) is pleased to announce that, effective 22nd September 2010, it has agreed to purchase from Beadell Resources Limited ("Beadell") the 1.0% gross iron ore revenue royalty rights covering the Anglo American plc operated Amapá Iron Ore System as well as Beadell's mining concessions and exploration tenements in the Amapá region of northern Brazil, for a sum of A$31.25 million in cash.
Completion of the purchase is conditional on finalising the definitive documentation of the Sale and Purchase Agreement and on the execution of a Deed of Assignment, Assumption and Consent by the entities that are parties to the royalty agreement.
The Amapá Iron Ore System is majority owned by Anglo American plc (70%) with Cliff Natural Resources Inc. owning the remaining 30%. Anglo American plc acquired the Amapá Iron Ore System in 2008 as part of its US$5.5 billion cash acquisition of the Minas-Rio Iron Ore Project and the Amapá Iron Ore System.
Based on Anglo American plc's disclosures the Amapá Iron Ore System commenced initial production in 2008 and started commercial production on the 1st of January 2010. Anglo American plc expects to produce 4.0Mt of sinter feed and pellet feed in 2010 from the Amapá Iron Ore System and could increase production to 6.5Mt per annum with further capital investment.
Anglo Pacific has also agreed with Beadell a similar 1.0% gross iron ore revenue royalty over its mining concessions and exploration tenements which cover approximately 2,500km2 and are considered prospective for iron ore.
Anglo Pacific is pleased to have agreed to purchase such a high quality iron ore production royalty which complements its existing Kestrel metallurgical coal royalty and the recently acquired Pilbara iron ore royalty as announced in May 2010.
Anglo Pacific Group plc is a global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in low-cost, long-life mining assets. The Group achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Group to pay a substantial proportion of these royalties to shareholders as dividends.
For further information:
Anglo Pacific Group plc +44 (0) 20 7318 6360
Peter Boycott, Chairman
Matthew Tack, Finance Director
Liberum Capital +44 (0) 20 3100 2000
Chris Bowman
Ellen Francis
Scott Harris +44 (0) 20 7653 0030
Stephen Scott
James O'Shaughnessy
Website: www.anglopacificgroup.com
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), www.sedar.comwhich 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.