- Anglo Pacific said Thursday that it had acquired a 4.25% stake in Labrador Iron Ore Royalty Corp for about US$50m.

Labrador Iron Ore Royalty Corp, or LIORC, is listed on the Toronto stock exchange and has a market capitalisation of approximately C$1.5bn.

LIORC receives 7% gross revenue royalty and a C$0.10 per tonne commission on all iron ore products sold by the Iron Ore Company of Canada, or IOC. LIORC also holds a 15.1% stake in IOC.

'This transaction continues Anglo Pacific's growth trajectory, and is in-line with Anglo Pacific's stated strategy of diversifying its sources of income and commodity exposure,' said Julian Treger, Chief Executive Officer of Anglo Pacific Group.

'The transaction is expected to be immediately accretive to adjusted earnings and free cash flow per share, and based on Anglo Pacific's current shareholding and LIORC broker consensus 2019 dividend forecasts (Bloomberg), the Company expects to receive between C$4.7 - C$5.7 million of royalty related revenue during the 2019 calendar year via LIORC dividends.'

At 9:39am: [LON:APF] Anglo Pacific Group PLC share price was +3p at 128p

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