Substantial shareholder of Royalco Resources (ASX: RCO), Anglo Pacific Group Plc has increased its stake in RCO.
Anglo Pacific acquired 3.23 million shares in RCO at an average price of 34 cents per share in on-market purchases in July.
Investors may recall that Anglo made a takeover offer for Royalco and increased the offer price to 34 cents per Royalco share. The Anglo Pacific's offer is final and was not extended beyond 10 July 2009.
In a statement, RCO indicated it had cash, liquids and physical gold worth approximately $8.5 million in total (16c per Share) and potential gross royalty income from the Reefton royalty alone of some $20 million over the next 3½ years (38c per Share). The offer from Anglo appeared to undervalue RCO's net worth based on the 34 cents per share offer.
Anglo interest in RCO is 31.11%, up from 24.99% previously. RCO has royalty income from mining projects in Australia in gold, copper, lead and silver.