Entrée Resources has announced it has sold its 0.5 percent net smelter returns royalty on Candente Copper’s Cañariaco Copper Project in Northern Peru, to Anglo Pacific Group.
Entrée Resources (TSX:ETG,NYSE:EGI) has announced it has sold its 0.5 percent net smelter returns royalty on Candente Copper’s (TSX:DNT) Cañariaco Copper Project in Northern Peru, to Anglo Pacific Group (LSE:APF,TSX:APY).
Under the agreement with Anglo Pacific, Entrée transferred all the issued and outstanding shares of its subsidiaries that directly or indirectly hold the royalty to Anglo Pacific for consideration of US$1 million, payable by the issuance of 478,951 Anglo Pacific shares at the Anglo Pacific 30-day volume weighted average price of 156.6079 GBP per share as of June 5, 2018.
As quoted in the press release, president and chief executive officer of Entrée Stephen Scott said:
“We are very pleased to enter into this agreement with Anglo Pacific. In addition to making a 100% gain on its initial US$500,000 investment, Entrée also retains long-term exposure to a potential royalty income stream from the Cañariaco Copper Project, when and if it is developed. In addition to potential appreciation on the share consideration and potential royalty income, Anglo Pacific has a continuing policy of paying a substantial portion of its income from royalties and streams to shareholders as dividends. We look forward to that dividend income as a future source of cash. The sale of Entrée’s respective subsidiaries that hold the Royalty to Anglo Pacific will further reduce Entrée’s annual cash burn rate, better positioning the company as it moves towards first development production from the Entrée/Oyu Tolgoi joint venture property in Mongolia.”