Anglo Pacific Group has agreed to a proposal with Red Rock Resources Plc to acquire 50% of the Western Australia based Mount Ida 1.5% Gross Revenue Iron Ore Royalty currently held by Red Rock Resources.

The acquisition, which caused Anglo Pacific’s stocks to jump over 3 percent this morning in London, will total AUD 14 million paid in three installments.

The first tranche of AUD 6 million will be paid on completion and agreement of the terms of the transaction, for a 0.3% GRR.

The second tranche of AUD 4 million for a further 0.225% GRR will be paid following the results of a positive definitive feasibility study, a formal decision to mine and that 20% of the pre-production capital costs outlined in the DFS are provided for.

The final tranche of AUD 4 million for a further 0.225% GRR will follow the start of commercial production, taking the total to 0.75% GRR.

The Mount Ida magnetite project is being developed by Jupiter Mines Limited and has a maiden JORC compliant inferred resource of 530 million tonnes at 31.94% Fe, as announced by Jupiter Mines Limited on 19th January 2011.

Anglo Pacific’s primary business is securing royalties from a mine’s revenue stream and providing long term, secure revenue streams for its shareholders. The company provides junior miners or project developers with the seed capital to fund the development of their project, in return for a royalty payment through the life of a project.

(Sourced from mining.com)