25 May 2010 14:56
News Release
25th May 2010
Anglo Pacific Group plc Signs a Memorandum of Understanding With Empire Mining Corporation for the Acquisition of a Chromite Royalty
Anglo Pacific Group plc ("Anglo Pacific") (APF.L) is pleased to announce that it has signed a Memorandum of Understanding with Empire Mining Corporation (EPC.TSX-V) ("Empire") for a CDN$3.1 million royalty financing and associated private placement in connection with its Bulqiza chromite project in Albania. The royalty financing, which is subject to due-diligence and final contract, is for a 3% gross royalty (net of Albanian transport costs) over product mined from Empire's Bulqiza chromite project. Empire has also agreed to sell Anglo Pacific up to 6,500,000 shares of Empire at $0.15 per share for net proceeds of up to $975,000. This deal will enable Empire to advance project exploration and development, with the aim of moving towards production as early as 2011.
The Bulqiza-Batra chromite deposit hosts the historically productive Bulqiza and Batra Mines which were responsible for the bulk of Albania's chromite output when it was the third largest producer in the world before the collapse of the communist regime in 1989. The Bulqiza-Batra deposit is characterized by high grades (+38% Cr2O3) and good metallurgical quality (Cr:Fe ratios of up to 3:1). Empire's Bulqiza Licence surrounds and extends from the producing Bulqiza and Batra Mines and includes the eastern and western extensions of the Bulqiza-Batra chromite deposit.
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