Contrarian Anglo Pacific Group picks up coal royalty

Anglo Pacific Group (TSX: APY; LSE: APF) is paying US$60 million in cash and US$5 million in shares for a royalty on Whitehaven Coal’s (ASX: WHC) Narrabri thermal coal mine in Australia at a time when the price of thermal coal is near a five-year low.

The deal – its second major acquisition since June 2014 – entitles Anglo Pacific to royalty payments equal to 1% of gross revenue on all coal produced from the operating Narrabri North mine in New South Wales, as well as all future coal mined from Whitehaven's Narrabri South project.

Read the complete article at NorthernMiner.com/news/contrarian-anglo-pacific