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.
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
-
Inheritance tax pension reforms will delay payments to grieving families and the taxmanThe government is pressing ahead with plans to charge inheritance tax on pensions but there are warnings that it will be harder for executors to administer an estate and pay HMRC
-
More than a million pensioners set to be hit by tax on savings accountsA combination of higher interest rates and frozen tax thresholds is dragging more people into paying tax on their cash savings
