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.

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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