Mr. Julian Treger reports
ANGLO PACIFIC GROUP PLC: ROYALTY UPDATE: SALAMANCA
Berkeley Energia Ltd. has entered into a $10-million (U.S.) financing package with Resource Capital Funds, a significant Berkeley shareholder. The financing comprises the issue of $5-million (U.S.) of Berkeley ordinary shares at a premium to the 10-day and 30-day volume-weighted average price and $5-million (U.S.) for a 0.375-per-cent net-smelter-return royalty over the Salamanca project.
In December, 2009, Anglo Pacific Group PLC acquired a 1-per-cent NSR royalty applicable to production from Berkeley's Spanish and Portuguese assets for $4.1-million (Australian), 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 an approximate $13-million (U.S.) valuation of Anglo Pacific's existing 1-per-cent NSR royalty, a multiple of our asset value and also minimizes shareholder dilution. We look forward to Berkeley undertaking initial infrastructure development and ultimately to first production at Salamanca."
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