8th Jun 2018 17:55
LONDON (Alliance News) - Anglo Pacific Group PLC said Friday that it will pay a USD1 million consideration to Entree Resources Ltd as part of a royalty agreement over the Canariaco copper project in Peru.
The arrangement is with Entree for a 0.5% net smelter return royalty over the project, which is wholly owned by Candente Copper Corp.
Anglo Pacific will pay the USD1 million - approximately GBP750,000 - through the issue of 478,951 of its own shares to Entree.
The Canariaco project contains Canariaco Norte, Quebrada Verde and Canariaco Sur.
Canariaco Norte is the only one of these that has been developed. It has a pretax net present value of USD2.0 billion and a pretax investment rate of return of 26.8%.
"The Canariaco Project ranks as one of the largest independently owned, undeveloped copper projects. The Project's additional exploration upside, low-cost potential and location in an established mining jurisdiction indicates a positive prospect for development during the next decade," said Anglo Pacific Chief Executive Officer Julian Treger.
Shares in Anglo Pacific closed up 2.3% at 153.50p on Friday.
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