UPDATE 1-Royalco rejects Anglo Pacific's improved offer

* Anglo Pacific says A$0.34 per share is final offer

* Royalco says offer undervalues company

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LONDON, July 3 (Reuters) - Australia-based royalty and mineral exploration company Royalco Resources Ltd (RCO.AX) said on Friday it rejected Anglo Pacific Group Plc's (APF.L) improved offer because it undervalues the company.

Anglo, Royalco's biggest shareholder, raised its cash offer to A$0.34 ($0.27) a share, valuing Royalco at A$17.9 million, adding that the revised price was its final offer.

Anglo made a A$0.30 per share offer in May. [ID:nBNG503237]

(Reporting by Julie Crust; Editing by Lorraine Turner)

($1=1.250 Australian Dollar)