UK’s new coal mine sent ‘adverse international signal’, campaigners say
Environmental campaigners are challenging the approval of a coking coal mine in northwest England.
Anglo Pacific Group (TSX: APY) (LSE:APF) has agreed today to a proposal with Red Rock Resources Plc to acquire 50% of the Western Australia-based Mount Ida 1.5% Gross Revenue Iron Ore Royalty (GRR) currently held by Red Rock Resources.
The acquisition, which caused Anglo Pacific’s stocks to jump over 3 percent this morning in London, will total $14m paid in three instalments.
The first tranche of $6m will be paid on completion and agreement of the terms of the transaction, for a 0.3% GRR.
The second tranche of $4m for a further 0.225% GRR will be paid following the results of a positive definitive feasibility study, a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for.
The final tranche of $4m for a further 0.225% GRR will follow the start of commercial production, taking the total to 0.75% GRR.
The Mount Ida magnetite project is being developed by Jupiter Mines Limited (ASX:JMS) and has a maiden JORC compliant inferred resource of 530 million tonnes at 31.94% Fe, as announced by Jupiter Mines Limited on 19th January 2011.
Anglo Pacific’s primary business is securing royalties from a mine’s revenue stream and providing long-term, secure revenue streams for its shareholders. The company provides junior miners or project developers with the seed capital to fund the development of their project, in return for a royalty payment through the life of a project.
