Anglo Pacific Group PLC (“Anglo Pacific”, or the “Company”) (LSE: APF, TSX: APY), the London and Toronto listed royalty company is pleased to announce that it has now settled the outstanding amount due under its promissory note receivable from Atrum Coal Groundhog Inc and its parent company, Atrum Coal NL (together “Atrum”) (the “Promissory Note”). The Promissory Note was issued as part consideration for the sale of the Company’s coal licences in September 2014, and subsequently extended in September 2015.
The remaining outstanding balance of US$1.4 million (including principal and accrued interest) has been settled by way of US$0.6 million in cash along with the issue of a new royalty as follows:
- 0.5% gross revenue royalty (“GRR”) over all production within Atrum’s Groundhog Anthracite Project (“Groundhog”) tenements for a period of ten years from the date that Atrum declares commercial production on the project; and subsequently
- 0.1% GRR from production within the Groundhog North Mining Complex project area.
Anglo Pacific will continue to retain the higher of a 1% GRR or US$1.00/t royalty on the areas of Groundhog that Atrum acquired from Anglo Pacific in 2014.
Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
“We are pleased to have recovered the full value of our outstanding promissory note, and in the process increased our royalty exposure to Atrum’s high quality anthracite project. We look forward to the project progressing into production.”
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