Acquisition of gold royalty from Hummingbird Resources
Wednesday, Dec 19, 2012
Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (LSE:APF)(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 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."