LONDON, UNITED KINGDOM--(Marketwired - Jan 27, 2015) - Anglo Pacific Group PLC (TSX: APY) (LSE: APF)
LSE: APF; TSX: APY
News Release
January 27, 2015
Anglo Pacific Group PLC
Isua Project sold to General Nice
Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY), the London and Toronto listed royalty company, issues the following update on its 1% Gross Revenue Royalty ("GRR") over the Isua Project located in Greenland.
On January 8, 2015, the Government of Greenland announced that it had approved the transfer of all shares of London Mining Greenland (Jersey) (1) Ltd ("London Mining Greenland") to General Nice Development Limited ("General Nice"). The Isua Project licence is owned by London Mining Greenland A/S, a wholly owned subsidiary of London Mining Greenland.
On January 26, 2015, Anglo Pacific received official confirmation of this from PricewaterhouseCoopers LLP ("PwC"), the administrator of London Mining Plc ("London Mining"). Anglo Pacific intends to waive its rights to the repayment of the US$30m advanced to London Mining in 2011 under the change of control provisions of the royalty financing agreement due to the inability of London Mining to make this repayment.
The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and therefore the royalty will continue to apply to the project.
Julian Treger, Chief Executive Officer, commented:
"We are encouraged by this development as we believe Isua remains a viable project in the longer term. We look forward to the progression of the Isua Project in the short to medium term under the ownership of General Nice who the Government of Greenland has assessed as being able to raise the necessary financing for the development of the exploitation licence, and we anticipate building a strong and mutually beneficial relationship between our companies."
About the transaction
Anglo Pacific owns a 1% GRR over the Isua Project, formerly owned and operated by London Mining which entered administration in October 2014. London Mining Greenland A/S retains the licence to exploit iron ore at the Isua Project, and 100% of the shares of its holding company, London Mining Greenland, have now been transferred to General Nice. The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and the royalty will continue to apply to the project.
Click on, or paste the following link into your web browser, to view the full announcement: http://www.rns-pdf.londonstockexchange.com/rns/2420D_1-2015-1-27.pdf
