LONDON, UNITED KINGDOM--(Marketwire - Dec. 18, 2012) - Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (News - Market indicators)(TSX:APY) is pleased to announce that it has entered into a royalty financing agreement in connection with the Dugbe 1 Gold Project (the "Project"), located in south eastern Liberia and operated by Hummingbird Resources Plc ("Hummingbird").
Anglo Pacific will provide Hummingbird with a cash payment of US$15 million in exchange for a 2% net smelter return royalty for any ore produced from the Project within a 20 kilometre radius of Dugbe F, including the Tuzon project.
The acquisition consideration will be paid in three equal tranches:
- Tranche 1: US$5 million will be payable immediately following local consents and filings being obtained.
- Tranche 2: US$5 million is payable upon either the completion of 25,000 metres of infill drilling or the publication of the results of a scoping study on the Dugbe 1 Project and not payable before 31 December 2012.
- Tranche 3: US$5 million is payable following the completion of both a scoping study and 25,000 metres of infill drilling at the Project and not payable before 31 March 2013.
The Project royalty covers a land area of approximately 1,256 square kilometres, which includes a NI 43-101 compliant Indicated and Inferred Resource.
Commenting on the acquisition, John Theobald, Chief Executive Officer of Anglo Pacific, said:
"We are extremely pleased with the acquisition of the royalty on the Dugbe 1 gold project, the third royalty financing we have announced this year. The acquisition enables Anglo Pacific to further diversify its royalty portfolio by strengthening our focus on precious metals, which we believe will offer considerable long term revenue growth and cash flows for the Company and its shareholders."
Notes to editors:
About Anglo Pacific Group PLC
Anglo Pacific Group PLC is a global natural resources royalties company. The Company's strategy is to expand its mineral royalty interests in long-life mining assets. The Company achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Company to pay a substantial proportion of these royalties to shareholders as dividends.
About Hummingbird Resources Plc
Hummingbird Resources plc is an AIM quoted mineral exploration company incorporated in England and Wales and headquartered in London. Since its establishment in November 2005, the Company and its subsidiaries (the "Group") has been active in Liberia, West Africa, and is currently the holder of the largest area of mineral exploration ground in the highly prospective Birimian geological region of eastern Liberia. The Group currently holds exploration licences covering approximately 7,000 square kilometres in total, which constitutes a significant proportion of eastern Liberia containing the Birimian sequence.
The Group has published a NI43-101 compliant Indicated and Inferred Resource on its Dugbe F deposit, for more information, please visit www.hummingbirdresources.co.uk.
This news release contains forward-looking statements based on assumptions and reflects Anglo Pacific Group PLC's expectations, estimates and projections of future events as of the date of this release. Forward-looking statements include, without limitation, statements regarding the performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of Anglo Pacific Group PLC. Often, but not always, forward-looking statements can be identified by the use of words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based upon certain material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by Anglo Pacific Group PLC in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. Also, forward-looking statements involve known and unknown risks, uncertainties and other factors that are beyond the Company's control and which may cause the actual results, performance or achievement to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such material factors and assumptions and risks and uncertainties include, among others, those described in the Company's annual information form dated as at June 29, 2010 (available on Anglo Pacific Group PLC's website and at www.sedar.com), which are incorporated by reference into this release and qualify any and all forward-looking statements made in this release.
Although Anglo Pacific Group PLC has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements herein relate only to events or information as of the date on which the statements are made and, except as specifically required by law, Anglo Pacific Group PLC undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise.