(Kitco News) - Anglo Pacific Group (TSX: APY) announced today that it has agreed to acquire a portfolio of royalties over advanced development stage copper and nickel projects from South32 Royalty for a fixed consideration of $185 million with further contingent consideration of up to $15 million.
The company said that the transaction further reinforces Anglo Pacific's position as the leading royalty and streaming company focused on future-facing commodities that are critical to achieving the energy transition required to support a more sustainable world.
The royalty portfolio acquired includes a 2.0% net smelter return ("NSR") royalty on the West Musgrave copper and nickel project in Australia, with first production targeted as early as 2024. The company expects portfolio contribution at steady state production to be $10-15 million (based on long-term consensus pricing).
Importantly, the portfolio includes a 2.0% NSR royalty on the Santo Domingo, fully permitted copper project in Chile. Portfolio contribution at steady state production is expected to be $20-35 million.
In addition, the company noted that the portfolio includes a 1.5% realized value royalty on the Nifty copper mine in Western Australia, with portfolio contribution at steady state production is expected to be US$1-3 million; as well as a 5.0% NSR royalty on the producing Carlota copper mine in Arizona, owned by KGHM Polska Miedz.
Anglo Pacific is the only non-precious metals royalty and streaming company listed on the London Stock Exchange (APF) and the Toronto Stock Exchange (APY). The company has a diversified portfolio of 16 assets across five continents and 10 commodities.
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