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RNS Number : 8477X

Anglo Pacific Group PLC

11 May 2016

News Release

May 11, 2016

Anglo Pacific Group PLC

Royalty Update: Salamanca

Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY) is pleased to announce that Berkeley Energia Limited ("Berkeley") has entered into a US$10 million financing package with Resource Capital Funds, a significant Berkeley shareholder. The financing comprises the issue of US$5 million of Berkeley ordinary shares at a premium to the 10-day and 30-day VWAP, and US$5 million for a 0.375% net smelter return ("NSR") royalty over the Salamanca project.

In December 2009, Anglo Pacific acquired a 1% NSR royalty applicable to production from Berkeley's Spanish and Portuguese assets for A$4.1 million which continues to be its carrying value. Anglo Pacific holds 30.3 million Berkeley ordinary shares.

Julian Treger, Chief Executive Officer of Anglo Pacific, commented:

"We are encouraged by this financing event, which implies a US$13 million valuation of Anglo Pacific's existing 1% NSR royalty, a multiple of our asset value, and also minimises shareholder dilution. We look forward to Berkeley undertaking initial infrastructure development, and ultimately to first production at Salamanca."

For further information:

 
 Anglo Pacific Group PLC 
  Julian Treger - Chief Executive Officer 
  Kevin Flynn - Company Secretary & Chief Financial 
  Officer                                                   +44 (0) 20 3435 7400 
 Website:                                              www.anglopacificgroup.com 
 Bell Pottinger 
  Nick Lambert / David Bass / Richard Crowley               +44 (0) 20 3772 2500

Notes to Editors

About Anglo Pacific

Anglo Pacific Group PLC 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 11, 2016 02:00 ET (06:00 GMT)

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