Work has been commenced by London Mining on a feasibility study for the Isua project based on a 15mtpa open pit and processing operation with a 15-year initial mine life, and production is targeted for 2015.
The deal contains a number of trigger events, the occurrence of which will allow Anglo Pacific to convert the royalty back into the $30m consideration, the satisfaction of which can be in cash or London Mining shares.
According to Anglo Pacific, the trigger events include a failure to fulfil certain milestones, including the completion of a bankable feasibility study by 31 December 2012 and obtaining an exploitation license by 31 December 2013.
Anglo Pacific chairman Peter Boycott said the company remains focussed on the acquisition of royalties that will enhance the value of its royalty portfolio and will enable it to capitalise on long term growth in key Asian markets, as well as providing additional diversification in its exposure to key commodities.
