Anglo Pacific Group PLC (“Anglo Pacific” or the “Company”) (LSE: APF, TSX: APY) is pleased to announce that Berkeley Energia Limited (“Berkeley”) has entered into a US$10 million financing package with Resource Capital Funds, a significant Berkeley shareholder. The financing comprises the issue of US$5 million of Berkeley ordinary shares at a premium to the 10-day and 30-day VWAP, and US$5 million for a 0.375% net smelter return (“NSR”) royalty over the Salamanca project.
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 holds 30.3 million Berkeley ordinary shares.
Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
“We are encouraged by this financing event, which implies a ~US$13 million valuation of Anglo Pacific’s existing 1% NSR royalty, a multiple of our asset value, and also minimises shareholder dilution. We look forward to Berkeley undertaking initial infrastructure development, and ultimately to first production at Salamanca.”
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