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Royalty Update: Salamanca Project DFS - Anglo Pacific Group

[vc_row][vc_column width=”1/1″][vc_column_text]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 a full copy of this release please click here[/vc_column_text][/vc_column][/vc_row]