TIDMAPF
RNS Number : 1887D
Anglo Pacific Group PLC
27 January 2015
News Release
January 27, 2015
Anglo Pacific Group PLC
Isua Project sold to General Nice
Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE:
APF, TSX: APY), the London and Toronto listed royalty company,
issues the following update on its 1% Gross Revenue Royalty ("GRR")
over the Isua Project located in Greenland.
On January 8, 2015, the Government of Greenland announced that
it had approved the transfer of all shares of London Mining
Greenland (Jersey) (1) Ltd ("London Mining Greenland") to General
Nice Development Limited ("General Nice"). The Isua Project licence
is owned by London Mining Greenland A/S, a wholly owned subsidiary
of London Mining Greenland.
On January 26, 2015, Anglo Pacific received official
confirmation of this from PricewaterhouseCoopers LLP ("PwC"), the
administrator of London Mining PLC ("London Mining"). Anglo Pacific
intends to waive its rights to the repayment of the US$30m advanced
to London Mining in 2011 under the change of control provisions of
the royalty financing agreement due to the inability of London
Mining to make this repayment.
The indirect transfer of the licence means that the company
structure of London Mining Greenland A/S remains the same and
therefore the royalty will continue to apply to the project.
Julian Treger, Chief Executive Officer, commented:
"We are encouraged by this development as we believe Isua
remains a viable project in the longer term. We look forward to the
progression of the Isua Project in the short to medium term under
the ownership of General Nice who the Government of Greenland has
assessed as being able to raise the necessary financing for the
development of the exploitation licence, and we anticipate building
a strong and mutually beneficial relationship between our
companies."
About the transaction
Anglo Pacific owns a 1% GRR over the Isua Project, formerly
owned and operated by London Mining which entered administration in
October 2014. London Mining Greenland A/S retains the licence to
exploit iron ore at the Isua Project, and 100% of the shares of its
holding company, London Mining Greenland, have now been transferred
to General Nice. The indirect transfer of the licence means that
the company structure of London Mining Greenland A/S remains the
same and the royalty will continue to apply to the project.
In Q4 2014, Anglo Pacific fully impaired the US$30m advanced
under the royalty financing agreement with London Mining following
its entry into administration, resulting in a charge of GBP15.0m to
the income statement. However, with the Isua project now under the
ownership of General Nice there is scope for recovery of value from
this royalty in the future.
Following the transfer of ownership of the Isua Project from
London Mining to General Nice, Anglo Pacific intends to waive its
rights under the change of control provisions of the royalty
financing agreement entered into with London Mining to the
repayment of the US$30m advanced in 2011 due to the inability of
London Mining to make this repayment.
Development of the project is now expected to continue, however
a number of licensing issues need to be addressed before
construction and operation of the mine can begin. The details of
the exploitation and closure plans as well as technical approvals
are currently being finalised, and London Mining Greenland A/S, the
Government of Greenland, and the two municipalities Qeqqata
Kommunia and Kommuneqarfik Sermersooq are negotiating an Impact
Benefit Agreement. These procedures are all expected by the
Government of Greenland to be finalised soon.
About General Nice
General Nice was founded in 1992 and is reported to be one of
China's largest importers of coking coal with its main operational
centre in Tianjin City. General Nice has three primary business
areas: development and operation of mineral deposits, commodities
trading, and commercial property development.
The total assets of General Nice are reported to have reached
US$8 billion and include investments in IRC Limited, a company with
iron ore production and development assets in Russia; Pluton
Resources, which operates an iron mine in Western Australia and the
Palabora Mining Company which operates a copper mine in South
Africa.
According to the Government of Greenland press release
announcing the transaction, General Nice has more than 100
subsidiary enterprises across more than 80 countries and regions in
China, Singapore, Indonesia, India, Thailand, Tajikistan, South
Africa, the United States, Australia and Russia and has around
12,000 employees globally.
Further information on General Nice can be found on its website:
http://www.generalnice.com.hk/index.html
For further information:
Anglo Pacific Group PLC +44 (0) 20 3435 7400
Julian Treger, Chief Executive Officer
Mark Potter, Chief Investment Officer
Website: www.anglopacificgroup.com
Bell Pottinger +44 (0) 20 3772 2500
Nick Lambert / Lorna Cobbett
Notes to Editors
About Anglo Pacific
Anglo Pacific is a global natural resources royalty company. The
Company's strategy is to develop a leading international
diversified royalty company with a portfolio centred on base metals
and bulk materials, focusing on accelerating income growth through
acquiring royalties on projects that are currently cash flow
generating or are expected to be within the next 24 months. It is a
continuing policy of the Company to pay a substantial portion of
these royalties to shareholders as dividends.
Cautionary statement on forward-looking statements and related
information
Certain information contained in this announcement, including
any information as to future financial or operating performance and
other statements that express management's expectation or estimates
of future performance, constitute "forward looking statements". The
words "expects", "anticipates", "plans", "believes", "estimates",
"seeks", "intends", "targets", "projects", "forecasts", or negative
versions thereof and other similar expressions identify
forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Further, forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties which could cause actual results to differ materially
from those anticipated, estimated or intended in the
forward-looking statements. The material assumptions and risks
relevant to the forward-looking statements in this announcement
include, but are not limited to: stability of the global economy;
stability of local government and legislative background;
continuing of ongoing operations at the properties underlying the
Group's portfolio of royalties in a manner consistent with past
practice; accuracy of public statements and disclosures (including
feasibility studies and estimates of reserve, resource, production,
grades, mine life, and cash cost) made by the owners and operators
of such underlying properties; accuracy of the information provided
to the Group by the owners and operators of such underlying
properties; no material adverse change in the price of the
commodities produced from the properties underlying the Group's
portfolio of royalties and investments; no material adverse change
in foreign exchange exposure; no adverse development in respect of
any property in which the Group holds a royalty or other interest,
including but not limited to unusual or unexpected geological
formations and natural disasters; successful completion of new
development projects; planned expansions or additional projects
being within the timelines anticipated and at anticipated
production levels; and maintenance of mining title. If any such
risks actually occur, they could materially adversely affect the
Group's business, financial condition or results of operations. For
additional information with respect to such risks and
uncertainties, please refer to the "Principal Risks and
Uncertainties" section of our most recent Annual Report and to the
"Risk Factors" section of our most recent Annual Information Form
available on www.sedar.com and the Group's website
www.anglopacificgroup.com. Readers are cautioned to consider these
and other factors, uncertainties and potential events carefully and
not to put undue reliance on forward-looking statements. The
forward-looking statements contained in this announcement are made
as of the date of this announcement only and the Group undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Third party information
As a royalty holder, the Group often has limited, if any, access
to non-public scientific and technical information in respect of
the properties underlying its portfolio of royalties, or such
information is subject to confidentiality provisions. As such, in
preparing this announcement, the Group has largely relied upon the
public disclosures of the owners and operators of the properties
underlying its portfolio of royalties, as available at the date of
this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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