LONDON (ShareCast) - Anglo Pacific Group has signed a royalty financing agreement of 15m dollars for a gold mining project in south east Liberia.
The global natural resources royalties company will inject the payment in exchange for 2% net return for ore produced from the Dugbe 1 Gold Project, operated by Hummingbird Resources - an AIM mineral exploration company based in London.
The agreement is for ore taken from within a 20-kilometre radius of Dugbe F, including the Tuzon project.
The first $5m will be paid upfront after local consents and documentation.
A further $5m will be handed over after December 31st following the completion of 25,000 metres of infill drilling or the publication of the results of a scoping study on the Dugbe 1 Project.
The final $5m instalment will be given after March 31st 2013, once another scoping study and 5,000 metres of infill drilling at the project is finished.
John Theobald, Chief Executive Officer of Anglo Pacific (LSE: APF.L - news) , said: "We are extremely pleased with the acquisition of the royalty on the Dugbe 1 gold project, the third royalty financing we have announced this year. The acquisition enables Anglo Pacific to further diversify its royalty portfolio by strengthening our focus on precious metals, which we believe will offer considerable long term revenue growth and cash flows for the Company and its shareholders."