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
-
Is it time to ride the recovery in emerging markets?Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
