13 May 2010 10:28
News Release
13th May 2010
Anglo Pacific Group plc
Royalty financing agreement with Shanta Gold Ltd
Anglo Pacific Group plc ("Anglo Pacific") announces that, effective 27th April 2010, it has entered into a Memorandum of Understanding, subject to final agreement and due diligence, to purchase royalties over two gold projects being developed by Shanta Gold Ltd (''Shanta'') in Tanzania for a sum of US$5million.
The first, a 3% net smelter royalty (NSR), will apply to the mined product from the Chunya project in south west Tanzania. The second, a 2% NSR, will apply to the Singida project in central northern Tanzania.
The Chunya project is in an old mining area, including a previously worked underground site, on Shanta property, where Shanta has now delineated a JORC compliant resource assessment of:
·; Indicated Resource - 281,104 ounces @ 2.56g/t Au
·; Inferred Resource - 361,612 ounces @ 2.27g/t Au
Both at a 1g/t cutoff on a mining licence application area, amenable to surface mining (disclosed by Shanta Gold Ltd on 17 April 2009). Further drilling is proposed and a mining feasibility study is due for completion in 2010. Shanta aims to bring this project into development in the near future.
Singida is a greenfield discovery where initial drilling has delineated a JORC compliant resource assessment of:
·; Measured and Indicated Resource - 549,987 ounces @ 3.60g/t Au
·; Inferred Resource - 308,508 ounces @ 2.28g/t
Both at a 1 g/t cutoff (disclosed by Shanta Gold Ltd on 28 May 2009). Further exploration is planned and Shanta expect this project to become its second operating mine in due course.
Anglo Pacific is pleased to be developing this new relationship with Shanta and to have the potential to gain exposure to Tanzania's growing gold mining industry.
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