Mining firm Red Rock Resources and commodities investor Anglo Pacific have cemented their royalty revenue agreement over the Mount Ida iron ore project in Australia.
The deal will see Anglo Pacific acquire 0.75% of royalties from the project in which Red Rock holds a 1.5% interest.
It's set to cost Anglo $14m but paid in three tranches. It's the first tranche which has been settled today.
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
The investment firm will hand Red Rock US$3,899,999.81 in cash and allot it 416,161 in new shares worth US$2,139,730 on the basis of last night's closing price.
Anglo Pacific fell 1.9% on the announcement as investors mulled the share dilution while Red Rock gained 1.15%.
BS
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
