Anglo Pacific Group PLC
Proposed transaction for Trefi Coal with Cardero
Resource Corp.
Anglo Pacific Group PLC (''Anglo
Pacific'') (LSE: APF) (TSX: APY) announces today that
it has agreed to a proposal with Cardero Resource Corp.
(''Cardero'') for Cardero to acquire up to
100% of Trefi Coal Corporation ("Trefi").
Trefi is a wholly owned subsidiary of Anglo Pacific and holds
the Trefi Coal Property in the Pine River area,
northeast British Columbia, Canada.
The main terms of the proposal are as follows:
· Cardero will be granted an option to acquire 50% of
Trefi following delivery of a bankable feasibility
study within four years, for total consideration of
C$3.5million and 500,000 common shares of
Cardero.
· For a further payment of C$6million, Cardero will be
granted an additional option to acquire the remaining
50% of Trefi, following a decision to mine.
· Anglo Pacific will retain a 3% gross revenue royalty
over the project.
· Cardero will issue 1 million warrants to Anglo
Pacific exercisable at C$1.40 per share for a period of
18 months.
· The proposed transaction is subject to settlement and
execution of formal documentation and the approval of
the Toronto Stock Exchange.
Commenting on this transaction, John Theobald, Chief
Executive Officer of Anglo Pacific, said:
''Anglo Pacific is very pleased to be working
with Cardero on the development of Trefi. Cardero
brings extensive operating coal expertise gained in
British Columbia and this project will complement
Cardero's development of its nearby Carbon Creek
metallurgical coal property. We will receive an upfront cash
payment recognizing the work and expense to date on
Trefi and will hold a valuable royalty over the life of the
project.''
Notes to editors:
Anglo Pacific Group PLC ("Anglo Pacific") is
a global natural resources royalties company. The strategy
of Anglo Pacific is to expand its mineral royalty
interests in low-cost, long-life mining assets. Anglo
Pacific achieves this through both direct acquisition
and investment in projects at the development and
production stage. It is a continuing policy of Anglo
Pacific to pay a substantial proportion of these royalties
to shareholders as dividends.
Cardero Resource Corp. ("Cardero"),
headquartered in Vancouver, British Columbia strives to
maximize shareholder value by utilizing
management's strong regional network and geological and
operational expertise to implement the most
economically sound and environmentally friendly approach to
building its business. Cardero's focus has been on
bulk commodities and includes a 75% interest in the Carbon
Creek Metallurgical Coal deposit in northeastern
British Columbia and the right to acquire a 90% interest in
the Sheini Hills Iron Ore project in Ghana.
Important notice
This news release contains forward-looking statements
based on assumptions and reflects Anglo Pacific's
expectations, estimates and projections of future events as
of the date of this release. Forward-looking statements
include, without limitation, statements regarding the
performance, prospects, opportunities, priorities, targets,
goals, objectives, strategies, growth and outlook of Anglo
Pacific. Often, but not always, forward-looking statements
can be identified by the use of words such as
"expects", "anticipates",
"plans", "believes",
"estimates", "seeks",
"intends", "targets",
"projects", "forecasts", or variations
(including negative variations) of such words and phrases, or
state that certain actions, events or results
"may", "could", "would",
"might" or "will" be taken, occur or be
achieved.
Forward-looking statements are based upon certain
material factors and assumptions that were applied in drawing
a conclusion or making a forecast or projection, including
assumptions and analyses made by Anglo Pacific in light of
its experience and perception of historical trends, current
conditions and expected future developments, as well as other
factors that are believed to be appropriate in the
circumstances. Also, forward-looking statements involve known
and unknown risks, uncertainties and other factors that are
beyond the Company's control and which may cause the
actual results, performance or achievement to be materially
different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such material factors and assumptions and risks
and uncertainties include, among others, those described in
the Company's annual information form dated as at June
29, 2010 (available on Anglo Pacific's website and at
www.sedar.com), which are incorporated by reference into this
release and qualify any and all forward-looking statements
made in this release.
Although Anglo Pacific has attempted to identify
factors that could cause actual actions, events or results to
differ materially from those described in
forward-looking statements, there may be other factors that
cause actions, events or results to differ from those
anticipated, estimated or intended. There can be no assurance
that actual results will be consistent with these
forward-looking statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The
forward-looking statements herein relate only to events
or information as of the date on which the statements are
made and, except as specifically required by law, Anglo
Pacific undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new
information, estimates or opinions, future events or results
or otherwise.