On January 8, 2015, the Government of Greenland announced that it had approved the transfer of all shares of London Mining Greenland (Jersey) to General Nice Development ("General Nice"). The Isua Project licence is owned by London Mining Greenland, a wholly owned subsidiary of London Mining Greenland.
On January 26, 2015, Anglo Pacific received official confirmation of this from PricewaterhouseCoopers ("PwC"), the administrator of London Mining ("London Mining"). Anglo Pacific intends to waive its rights to the repayment of the US$30m advanced to London Mining in 2011 under the change of control provisions of the royalty financing agreement due to the inability of London Mining to make this repayment.
The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and therefore the royalty will continue to apply to the project.
Julian Treger, Chief Executive Officer, commented:
"We are encouraged by this development as we believe Isua remains a viable project in the longer term. We look forward to the progression of the Isua Project in the short to medium term under the ownership of General Nice who the Government of Greenland has assessed as being able to raise the necessary financing for the development of the exploitation licence, and we anticipate building a strong and mutually beneficial relationship between our companies."
