Acquisition

RNS Number : 1357J

Baker Steel Resources Trust Ltd

07 September 2016

 

BAKER STEEL RESOURCES TRUST LIMITED

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

7 September 2016

Acquisition of further Stake in Nussir

Baker Steel Resources Trust Limited (the "Company") announces that it has agreed to acquire a further 5.4% interest in Nussir ASA ("Nussir") to add to the 9.8% of Nussir it already holds, for a consideration of £624,728.80. The consideration has been satisfied through the issue to the vendors of 1,561,822 new ordinary shares at 40p per share, equal to the net asset value per share of the Company at 31 August 2016. The price per share of the Nussir shares being acquired is the same as the carrying value of the Company's existing interest in Nussir.

Nussir is a minerals exploration and development company, whose main project is the previously producing Nussir and Ulveryggen copper project in Kvalsund, Norway on which a preliminary economic assessment has been completed. The Nussir project has to date identified JORC classified resources of 74 million tonnes grading 1.1% copper.  It is a company that the Investment Manager has followed for several years and the Company acquired the majority of its existing holding in July 2015.

On 13 December 2015, Nussir achieved a key milestone in its development plans when the Norwegian Environment Agency granted it the permit to deposit tailings from the project into the Repparfjord. This followed several years of exhaustive environmental studies and consultation and this permission significantly de-risked the project. Nussir is currently undertaking a pre-feasibility study on the Nussir and Ulveryggen copper project which is expected to be completed at the end of 2016.

The new shares will rank pari passu with all existing ordinary shares. Following the Admission of the new ordinary shares to listing there will be 116,118,157 ordinary shares in issue with a further 700,000 shares held in treasury. The figure of 116,118,157 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Applications will be made for 1,561,822 new ordinary shares to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's Main Market for listed securities. Admission is expected to become effective, and dealings in the New Shares to commence at 8 a.m. on 12 September 2016.

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)

 

END

 

 

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