SHARES in mining investment company Anglo Pacific dipped by 1.5 per cent yesterday after it announced the $65m (£42.8m) acquisition of a royalty interest in the Narrabri coal project in Australia.
The transaction will be funded using a combination of a proposed firm placing, placing and open offer to raise $55m to $60m, as well as a $30m three-year revolving credit facility supplied by Barclays Bank.
Anglo Pacific will receive royalty payments equal to one per cent of gross revenue on all coal produced from the mine, which is operated by Whitehaven Coal.
Julian Treger, chief executive of Anglo Pacific, said the deal would immediately enhance the firm’s portfolio of producing royalties and diversify its royalty income.
He added: “The acquisition is also consistent with Anglo Pacific’s strategy to acquire royalties on mining assets that are competitively positioned on the cost curve, cash or near-term cash producing and located in established mining.”