Anglo Pacific looks to tap into Aussie iron ore project
FTSE 250 natural resources royalties company Anglo Pacific has agreed to a proposal to buy 50% of Red Rock Resources' Mount Ida iron ore royalty for $14m.
FTSE 250 natural resources royalties company Anglo Pacific has agreed to a proposal to buy 50% of Red Rock Resources' Mount Ida iron ore royalty for $14m.
The Mount Ida magnetite project is located in Western Australia and is currently being developed by Jupiter Mines Limited. On January 19th 2011, it was estimated that the project had a maiden JORC-compliant inferred resource of 530m tonnes at a grade of 31.94% Fe.
Meanwhile, a scoping study completed in March identified an operation that would produce 10m tonnes per annum of magnetite concentrate grading over 68% Fe. "A feasibility study is underway for completion by the end of this year," Anglo Pacific said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Red Rock Resources owns a 1.5% gross revenue royalty (GRR) in the project, 0.75% of which Anglo Pacific has proposed to buy through this acquisition.
The acquisition will be paid in three instalments by way of cash and Anglo Pacific shares.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published