Royalty Update: Salamanca Project DFS

RNS Number : 2611E

Anglo Pacific Group PLC

15 July 2016

 

News Release

July 15, 2016

Anglo Pacific Group PLC

Royalty Update: Salamanca Project DFS

Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY) notes the publication by Berkeley Energia Limited ("Berkeley") of an independent Definitive Feasibility Study ("DFS") on its Salamanca Project (the "Project").

The DFS reports that the Project is capable of producing an average saleable production of 4.4 million pounds of uranium per annum over ten years of steady state production, or an average of 3.5 million pounds of uranium per year over a 14 year mine life. This is significantly higher than the rate of production assumed when the Company acquired the royalty in 2009 due to the considerable increase in resource discovered by Berkeley over the past twelve months. First production, and hence first generation of royalty income for the Company, is expected in 2018.

In December 2009, Anglo Pacific acquired a 1% NSR royalty applicable to production from Berkeley's Spanish and Portuguese assets for A$4.1 million which continues to be its carrying value. Anglo Pacific also holds 30.3 million Berkeley ordinary shares.

Julian Treger, Chief Executive Officer of Anglo Pacific, commented:

"We are encouraged by the timely release of this positive DFS. Based on Berkeley's long-term contracted uranium price assumptions, the Project should generate average gross annual sales revenue of approximately US$180m. Anglo Pacific has a 1% NSR royalty based on the revenues received by Berkeley. We look forward to Berkeley's progress in bringing this exciting project into production."

For further information:

Anglo Pacific Group PLC Julian Treger - Chief Executive Officer Kevin Flynn - Company Secretary & Chief Financial Officer	[phone]
Website:	www.anglopacificgroup.com
Bell Pottinger Nick Lambert / David Bass / Richard Crowley	[phone]

Notes to Editors

About Anglo Pacific

Anglo Pacific Group PLC is a global natural resources royalty company. The Company's strategy is to develop a leading international diversified royalty company with a portfolio centred on base metals and bulk materials, focusing on accelerating income growth through acquiring royalties on projects that are currently cash flow generating or are expected to be within the next 24 months. It is a continuing policy of the Company to pay a substantial portion of these royalties to shareholders as dividends.

 

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