29th Dec 2020 19:02
Anglo Pacific Group PLC - natural resources royalties business based in London - Is acquiring an approximately 2.1% equity stake in Brazilian Nickel Ltd. The investment cost is USD2 million. This investment is part of a wider USD27.5 million funding led by TechMet Ltd with funds received as part of an equity investment from US International Development Finance Corp. This is part of a planned acceleration of Brazilian Nickel's Piaui project. Anglo Pacific has a 1.3% gross revenue royalty in Piaui plus the option to acquire an incremental gross revenue royalty for USD70 million, with the total royalty entitlement being 4.3%, at the time of the PNP24k project construction decision.
Anglo Pacific Chief Executive Julian Treger: "We are very pleased to invest a further [approximately] USD2 million into [Brazilian Nickel] which will help to accelerate the Piaui project which, if the company decides to exercise its option [gross revenue royalty] once fully ramped up in the middle of the decade, providing meaningful income to the portfolio as we continue on the path of portfolio diversification. The involvement of TechMet, in whom the US government recently became a significant shareholder, is a very positive signal of the technical viability of the project and a recognition of the robustness of Anglo Pacific's original royalty investment thesis."
Current stock price: 125.00 pence
Year-to-date change: down 35%
By Anna Farley; [email protected]
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