APF.L Regulatory News (APF)

11 Mar 2008 07:01

Anglo Pacific Group PLC11 March 2008 11th March 2008 Anglo Pacific Group PLC Acquisition of gold royalty from Kinbauri Gold Corp. Anglo Pacific Group plc ("the Company") announces that, effective 10th March2008, it has agreed to acquire a 2.5% net smelter return ("NSR") from KinbauriGold Corp. ("Kinbauri") on Kinbauri's El Valle & Carles mines in exchange forC$7.5m. The agreement, which is subject to legal approval, also includes aclause increasing the NSR to 3% should the gold price exceed US$1,100 per ounce. If production from the El Valle mill does not exceed a rate of 90,000 ounces ofgold per annum on or before 31st December 2012 the amount advanced (less amountsalready paid to the Company under the royalty) may convert into common shares ofKinbauri at a price equal to the lower of $0.73 and the discounted market priceat the time of conversion. This conversion is at the option of the Company. Kinbauri is a TSXV tier 1 company (TSXV: KNB) focused on the development of theEl Valle property in Asturias, Spain. The mine is scheduled to commenceproduction in the fourth quarter of 2010. This acquisition marks another positive step in the Company's strategy tobroaden and diversify its portfolio of royalties. For further information: Anglo Pacific Group plc +44 (0) 20 7318 6360Mr Matthew Tack Numis Securities +44 (0) 20 7260 1000Mr James BlackMr John Harrison Scott Harris +44 (0) 20 7653 0030Mr Stephen ScottMr James O'Shaughnessy Website: www.anglopacificgroup.com This information is provided by RNS The company news service from the London Stock Exchange