Further to the announcements on February 4 and March 6, 2015, Anglo Pacific Group PLC (“Anglo Pacific”, the “Company”) (LSE: APF, TSX: APY) is pleased to announce that it has completed the purchase of a private party’s royalty interest in the Narrabri coal project (“Narrabri”).
Of the total consideration of US$65m, the cash component of US$60m has been paid (subject to a number of completion adjustments) and the balance of US$5m has been satisfied by the issue of 4,135,238 Acquisition Shares conditional upon their admission to the Official List and to trading on the London Stock Exchange’s market for listed securities and to listing on the Toronto Stock Exchange. The Acquisition Shares are expected to be admitted to the premium segment of the Official List and commence trading on the London Stock Exchange’s main market for listed securities at 8:00 a.m. on March 12, 2015 and at market open on March 12, 2015 on the Toronto Stock Exchange. The Acquisition Shares will rank pari passu in all respects with the Existing Ordinary Shares.
Capitalised terms used, but not defined, in this announcement, have the same meanings as set out in the announcement released by the Company on February 4, 2015 in relation to the Firm Placing, Placing and Open Offer.
Commenting on the Acquisition, Julian Treger, Chief Executive Officer of Anglo Pacific, said:
“We are pleased to have completed the acquisition of the Narrabri royalty. The Acquisition will immediately enhance our portfolio of producing royalties and help to diversify our royalty cash flow through the addition of thermal coal exposure, which we believe is beginning to benefit from recent supply cuts in Australia and a recovery in spot pricing.
The Acquisition is also in line with Anglo Pacific’s strategy to acquire royalties on mining assets that are competitively positioned on the cost curve, cash or near-term cash producing, located in established mining jurisdictions and operated by experienced mining companies with strong track records. We hope to continue to capitalise on current market conditions and find similar opportunities that can deliver long-term value to our shareholders.”