Anglo Pacific Group Signs MOU With Horizonte Minerals

27th Jul 2010 16:15

LONDON (Dow Jones)--Anglo Pacific Group PLC (APF.LN), a diversified commodities royalty company, said Tuesday it has signed a Memorandum of Understanding, or MOU, with Horizonte Minerals PLC (HZM.LN) for Anglo Pacific to acquire an option to purchase a Net Smelter Royalty, or NSR, on all revenues from the advanced exploration stage Araguaia and Lontra Nickel Projects in Brazil. MAIN FACTS: -Under the MOU, Anglo Pacific will pay to Horizonte the sum of $500,000 in exchange for an option to acquire a 1.5% NSR from the Araguaia Project; The $500,000 will be netted off from the agreed exercise payment of U.S.$13 million if the option is exercised in due course. -The NSR would be at a rate of 1.5% on production up to 30,000 metric tons per annum, or tpa, reduced by 0.02% for every 1,000 tpa above this rate of production, but never reducing below 1.1%; The NSR would be payable on all revenue from the Araguaia Project. -Shares of Anglo Pacific at 1512 GMT up 3 pence or 1.14%, at 266 pence, valuing the company at GBP288.6 million. Shares of Horizonte Minerals up 2 pence or 22.9%, at 10.8 pence, valuing the company at GBP6.3 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 27, 2010 11:15 ET (15:15 GMT)