(Kitco News) – Anglo Pacific Group (SPF:LSE) have confirmed that it is acquiring an approximately 2.1% equity stake in Brazilian Nickel Limited at an investment cost of $2 million (approximately £1.5 million). Each BRN share is valued at roughly £0.45.
The investment is part of a wider $27.5 million funding led by TechMet Limited, with funds they have received as part of a significant equity investment from the U.S. International Development Finance Corporation, as part of the anticipated acceleration of the development of Brazilian Nickel’s Piauí Project.
Julian Treger, Chief Executive Officer of the Company, said ”We are very pleased to invest a further $2 million into BRN which will help to accelerate the Piauí Project which, if the Company decides to exercise its option to increase the GRR to 4.25%, has the potential to generate US$14.5 million per annum of GRR once fully ramped up in the middle of the decade, providing meaningful income to the portfolio as we continue on the path of portfolio diversification. The involvement of TechMet, in whom the US Government recently became a significant shareholder, is a very positive signal of the technical viability of the Project and a recognition of the robustness of Anglo Pacific’s original royalty investment thesis.”
Although the shares are down for the year on the session the shares are 3.32% higher. The 100.00 level looks to be a major support area and now if the bulls manage to break 130.00 there could be a more significant move to the upside.
