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.

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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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