Global natural resources royalty company Anglo Pacific has acquired a royalty interest in North America's three largest chromite ore deposits from KWG Resources.

The company has paid $18m for 7207565 Canada Inc, which owns a 1% net smelter royalty interest in the Black Thor, Black Label and Big Daddy chromite deposits in Northern Ontario. The deposits are owned and operated by Cliff Natural Resources.

Cliffs is currently undertaking an environmental assessment for Black Thor as part of its project development plans, and once constructed anticipates the production of ore for both direct sale and integrated ferrochrome production.

"The acquisition fits well with our strategy for growth and demonstrates strong synergies with our existing royalty portfolio which has a significant focus on steel making raw materials," said Anglo Pacific's chairman, Peter Boycott.

"The group anticipates that the royalties from these chromite deposits, the largest known deposits of chromite ore in North America, will provide long term cash flows and continuing revenue growth for shareholders," Boycott added.