Anglo Pacific Group PLC (“Anglo Pacific” or the “Company”) (LSE: APF, TSX: APY), the London and Toronto listed royalty company is pleased to provide an update on its interests in Berkeley Energy Limited (“Berkeley”) following the release of Berkeley’s Salamanca Project Pre-Feasibility Study (“PFS”) yesterday.
Anglo Pacific acquired a 1% Net Smelter Royalty over all production from Berkeley’s Spanish and Portuguese assets for AUD$4m in December 2009. The Company also has a 16.75% disclosed equity interest in Berkeley.
Anglo Pacific is encouraged by Berkeley’s decision to accelerate the development of the Salamanca Project, with site works now expected to commence in mid-2016, much earlier than Anglo Pacific had previously anticipated. This, combined with the longer mine life, increased grade and higher uranium production profile should considerably increase the value of the Company’s Salamanca royalty, well in advance of the Company’s current carrying value of AUD$4m.
Berkeley also noted that the inclusion of the Zona 7 deposit into the wider Project, which previously only included the Retortillo and Alameda deposits, transforms the economics of the Salamanca Project, with a stated net present value of US$871.3m and an IRR of 93.3% over a mine life of 18 years.
Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
“We believe that the Salamanca Project is rapidly becoming one of the world’s best undeveloped, near production uranium assets, and we are delighted to be involved in this very exciting story through both our royalty and equity interests which we expect to increase in value as the mine approaches production.”
For a full copy of this press release please click here.