Anglo Pacific Group PLC
11 January 2006
January 11, 2006
Anglo Pacific Group PLC
Anglo Pacific Announces Proposed Joint Venture
Anglo Pacific Group ('Anglo Pacific') is pleased to announce that it has entered
into a Memorandum of Understanding (MOU) with West Hawk Development Corp. ('West
Hawk'), (WHD-TSX.V)
The intent of the MOU is to form a working relationship between the two
companies focusing on the joint exploration and development of Anglo Pacific's
and West Hawk's Upper and Lower Discovery coal seams located at the Groundhog
coal field in British Columbia, Canada.
The two properties are contiguous and are underlain by dominantly shale and
sandstone beds of the Upper Jurassic Currier Formation which contain the Upper
and Lower Discovery coal seams. The coal seams outcrop on both properties and
are believed to be stratigraphically and structurally related according to the
results of previous drilling. In total, twenty five individual seams have been
documented in the area grading from anthracite to meta-anthracite in quality.
The seams on West Hawk's Lower Discovery and Evans Creek properties alone
comprise an inferred resource of 48,000,000 tonnes, having been outlined in a
recently completed National Instrument 43-101 report produced by Don Wedman
P.Eng.. Additional resources are expected to be outlined by exploration work on
both Anglo Pacific's Upper Discovery and West Hawk's Lower Discovery Creek
properties.
Dr. Mark Hart the COO of West Hawk explained 'the concept of the joint venture
plan is to gain economies of scale by increasing the size of the project and
therefore reducing exploration, development and mining costs'. Dr. Hart has
just recently joined West Hawk and is considered an expert in Coal Mining having
graduated with a PhD from the Colorado School of Mines and worked as a senior
executive for several senior mining and energy companies.
It is proposed that both Anglo Pacific and West Hawk will each be initially
contributing C$600,000 to the joint operating company and implementing a
C$1,200,000 exploration program to begin this spring designed to advance the
current inferred resources at the Upper and Lower Discovery properties to the
measured and indicated category.
As part of the working relationship Anglo Pacific has agreed to subscribe
C$600,000 to a private placement in West Hawk consisting of 1.5 million units
at a price of C$0.40 per unit. Each unit will consist of 1 common share and one
half of one share purchase warrant. Each whole warrant will entitle the holder
to purchase one share of West Hawk at a price of C$0.60 for a period of 2 years.
Once the financing is completed Anglo Pacific will be the beneficial owner of
3.9 million common shares of West Hawk equivalent to approximately 13.% of the
issued and outstanding share capital.
West Hawk is a mineral exploration and development company committed to building
shareholder value through the development of its four coal properties in
Northern British Columbia including plans to build an Integrated Gasification
Combined Cycle (IGCC) electrical power plant and a coal-to-liquids plant (diesel
& naphtha) at the company's Australian Creek project 28 km South of Quesnel B.C.
This information is provided by RNS
The company news service from the London Stock Exchange
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