Acquisition

RNS Number : 2499L

Baker Steel Resources Trust Ltd

02 July 2014

 



BAKER STEEL RESOURCES TRUST LIMITED

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

2 July 2014

Acquisition of Stake in Global Oil Shale Group plc

Baker Steel Resources Trust Limited (the "Company") announces that it has acquired a 5.8% interest in Global Oil Shale Group plc ("GOS") valued at£1.75 million. The consideration has been satisfied through the issue of 3,301,886 new Ordinary Shares of the Company (the "New Shares") to the vendor at a price of 53.0 pence per share (equivalent to the latest NAV per Share of the Company) and these shares have subsequently been placed  with an institutional investor in the secondary market.

GOS is a private oil shale explorer and developer whose key asset is the Julia Creek oil shale project in Queensland, Australia. The Julia Creek tenements cover an area of 1,041 square kilometres and contain JORC defined Indicated and Inferred Resources of 2.18 billion barrels of shale oil at grades of 40 - 90 litres per tonne and average of 61 litres per tonne at zero moisture. GOS also recently signed a Memorandum of Understanding with the Moroccan authorities to develop a block containing JORC resources of 376 million barrels of shale oil.

Oil shale is a fine-grained sedimentary rock containing organic matter that yields substantial amounts of oil and combustible gas upon destructive distillation. It is amenable to large scale strip mining methods.

GOS represents the Company's first investment in the energy part of the mining sector and in Australia, and provides exposure to a nascent industry which is yet to be focussed on by mainstream investors.

Application has been made for the New Shares to be admitted to the premium segment of the Official List of the Financial Conduct Authority (the "FCA") and to trading on the main market for listed securities of the London Stock Exchange (together, "Admission"). It is expected that Admission will take place at 8.00am on 8 July 2014.

Following Admission, the number of Ordinary Shares that the Company will have in issue will be 71,703,776.

Further details of the Company and its investments are available on the Company's website www.bakersteelresourcestrust.com 

Enquiries:

Baker Steel Resources Trust Limited     [phone]

Francis Johnstone
Trevor Steel

Numis Securities Limited                       [phone]

David Benda (corporate)

James Glass (sales)

Pelham Bell Pottinger

Lorna Spears                                         [phone]

Joanna Boon                                          [phone]

The Net Asset Value ("NAV") figure stated is based on unaudited estimated valuations of the underlying investments and not necessarily based on observable inputs. Such estimates are not subject to any independent verification or other due diligence and may not comply with generally accepted accounting practices or other generally accepted valuation principles. In addition, some estimated valuations are based on the latest available information which may relate to some time before the date set out above.

Accordingly, no reliance should be placed on such estimated valuations and they should only be taken as an indicative guide. Other risk factors which may be relevant to the NAV figure is set out in the Company's Prospectus dated 31 March 2010.

 

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