Disposal of Panorama Coal Project

RNS Number : 1819Q

Anglo Pacific Group PLC

28 August 2014

 

August 28, 2014

Anglo Pacific Group PLC

Disposal of Panorama Coal Project

Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (LSE: APF, TSX: APY) is pleased to announce that it has entered into a definitive agreement with Atrum Coal NL ("Atrum Coal") (ASX: ATU) to sell its interest in the Panorama Coal Project.  The total consideration comprises US$500,000 cash payable to Anglo Pacific on completion, together with 1,000,000 Atrum shares and a deferred consideration of US$2.0m in the form of a 12-month promissory note with an interest coupon of 8%.  In addition, the Company will retain a royalty on coal sales from the assets being sold equivalent to the higher of 1% of gross revenue on a "mine gate" basis or US$1/tonne.  Completion is anticipated to occur by September 2, 2014.

The Panorama Coal Project lies approximately 15km west of Atrum Coal's Groundhog Anthracite Project in British Columbia, Canada and is believed to have anthracite-bearing potential.

Anglo Pacific continues to monetise non-core equity investments in order to realise cash for investment into royalty deals.  A further update is provided in the H1 2014 interim results announcement on August 28, 2014.

Commenting on the transaction, Julian Treger, Chief Executive Officer of Anglo Pacific, said:

"This transaction is consistent with Anglo Pacific's strategy of monetising equity investments and growing our portfolio of royalties.  We look forward to working with the Atrum Coal management team on the development of these coal properties in Canada."

For further information:

Anglo Pacific Group PLC                                                                                   [phone]

Julian Treger - Chief Executive Officer

Mark Potter - Chief Investment Officer

Peter Mason - Company Secretary

Website:                                                                                                    www.anglopacificgroup.com

Bell Pottinger                                                                                                     [phone]

Nick Lambert / Lorna Cobbett

Notes to Editors

About Anglo Pacific

Anglo Pacific is a global mining royalty company. The Company's strategy is to create the premier base metals and bulk materials listed royalty company, 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.

About Atrum Coal

Atrum Coal is developing its flagship Groundhog Anthracite Project in British Columbia, Canada. Atrum Coal recently completed a Pre-Feasibility Study on the project and is progressing detailed engineering for an initial 3Mtpa mine for export of anthracite to Japan, Korea and China.

 

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