Anglo Pacific Group plc (AGP) announces that it has agreed to purchase the DFD Rhodes Group iron ore royalty, covering three exploration licences in the central Pilbara region of Western Australia, for a sum of A$23 million in cash. The vendors comprise DFD Rhodes Pty Ltd, JCO Investments Pty Ltd, Eamon Ian Cornelius and Brenton Anthony Parry (DFD Rhodes Group). The tenements, covering 263 square kilometres, are owned by a wholly owned subsidiary of BHP Billiton (‘BHPB’) and are subject to a 1.5% royalty on total gross revenue. The royalty tenements host a number of known iron occurrences, the most significant being the Railway deposit. The tenements are supported by extensive rail infrastructure including the rail lines from Rio Tinto’s West Angelas and Yandicoogina mines and BHPB’s rail line serving its current operations at Mining Area C, which lies immediately to the east of the Railway deposit.
Anglo Pacific Group plc is a global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in low-cost, long-life mining assets. The Group achieves this through both direct acquisition and investment in projects at the development and production stage. It is a continuing policy of the Group to pay a substantial proportion of these royalties to shareholders as dividends.
