21 Dec 2010 17:22
News Release
December 21, 2010
Anglo Pacific Group PLC
Completes Acquisition of Chromite Royalty from Empire Mining Corporation
Anglo Pacific Group PLC (the "Company", the "Group") (LSE: APF) (TSX: APY) is pleased to announce on December 20, 2010 the completion of its acquisition of a 3% gross royalty over Empire Mining Corporation's ("Empire") (TSX-V: EPC) Bulqiza chromite project in Albania.
The Company also announces its acquisition via private placement of 6,700,000 shares of Empire at C$0.225 per share, representing approximately 16.28% of the outstanding shares of Empire. The Company now holds a total of 8,213,500 shares of Empire, or approximately 19.96% of the total issued and outstanding Empire shares. The net proceeds of C$4.1million from these transactions will enable Empire to advance project exploration and development, with the aim of moving towards production in late 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 chromite 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.
The Empire shares acquired by the Company are held for investment purposes. This investment will be reviewed on a continuing basis by the Company and such holdings may be increased or decreased in the future. The Company may in the future acquire or dispose of Empire shares, through the open market, privately or otherwise, as circumstances or market conditions warrant.
The Company is pleased to have acquired its first chromite royalty which further diversifies the Group's commodity exposure.
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.
In connection with this news release, an early warning report will be filed by the Company in accordance with applicable securities laws. To obtain a copy of the early warning report, please contact John Theobald on +44 207 318 6360.
For further information:
Anglo Pacific Group PLC +44 (0) 20 7318 6360
Peter Boycott, Chairman
John Theobald, Chief Executive Officer
Liberum Capital +44 (0) 20 3100 2000
Chris Bowman
Ellen Francis
Richard Bootle
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), which 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.