27th Jan 2015 09:19
LONDON (Alliance News) - Anglo Pacific Group PLC Tuesday said it still has a 1% gross revenue royalty over the Isua iron ore mine in Greenland after the company that operated the mine was transferred out of administration, although it has had to write off a loan it made to the former operator.
The mine's operator London Mining went into administration last October, but the holding company that owns the Isua project has now been transferred to General Nice Development Ltd, one of China's biggest coking coal importers.
"We are encouraged by this development as we believe Isua remains a viable project in the longer term. We look forward to the progression of the Isua Project in the short to medium term under the ownership of General Nice who the Government of Greenland has assessed as being able to raise the necessary financing for the development of the exploitation licence, and we anticipate building a strong and mutually beneficial relationship between our companies," Anglo Pacific hief Executive Julian Treger said in a statement.
Anglo Pacific booked a GBP15.0 million charge in the fourth quarter of 2014 after it fully wrote down the USD30 million it had advanced London Mining under the financing agreement the pair had. It said it now intends to waive its rights under the change of control provisions in the agreement because London Mining can't afford to repay the USD30 million as the provisions required.
Anglo Pacific Group shares were down 0.4% at 90.60 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
APF.L