BAKER STEEL RESOURCES TRUST
LIMITED
(Incorporated in Guernsey with
registered number 51576 under the provisions of The Companies
(Guernsey) Law, 2008 as amended)
29
November 2024
Conditional agreement to Sell Nussir
ASA
Baker Steel Resources Trust Limited
(the "Company") is pleased to announce that it and the other 3 main
shareholders of Nussir ASA ("Nussir"), together representing 70.8%
of Nussir's issued share capital, have agreed to sell their shares
in Nussir to Blue Moon Metals Inc ("Blue Moon"), a company listed
on the TSX-V stock exchange. The transaction values Nussir at
US$55.3 million and inter alia is conditional upon and subject to
Blue Moon:
1. raising a minimum of
US$21.4 million and maximum of US$35.7 million from the issue of
new equity;
2. the signature of
definitive agreements; and
3. the agreement by over
90% of Nussir shareholders and TSX approval.
Completion is expected around the
end of February 2025.
Nussir, a private company, is the
owner of the Nussir copper project in northern Norway. In
2023, Nussir completed the update of its Definitive Feasibility
Study ("DFS") changing the operations from diesel based to one
based on a fully electrified mine producing around 14,000 tonnes of
copper per year over a 14 year mine life. The updated DFS economics
gave a NPV8% of US$191 million with an IRR of 22% based on a copper
price of US$8,000 per tonne.
This transaction strengthens the immediate prospects
for our investment in Nussir by bringing it together with
experienced mine and project builders, two other prospective
projects, along with financing and a TSX listing. It is a major
milestone towards bringing the Nussir project into production.
Further details of the proposed transaction and on Blue Moon are
available on Blue Moon's website https://bluemoonmetals.com
Depending on the final amount to raised by Blue
Moon, the Company is expected to hold between 10-12% of the
enlarged Blue Moon share capital on completion.
The Company currently holds 21.6% of the issued share capital of Nussir which, on the basis of
the Company's last published net asset value ("NAV"), represented
approximately 4.1% of NAV with a carrying value of £3.6 million.
The Company will review its carrying value of
Nussir at the end of November 2024 to include a discount to the
offer price for the conditions of the transaction particularly for
the fact that initially its shares in Blue Moon will be subject to
lock-up.
Further details of the Company and
its investments are available on the Baker Steel Capital Managers
website
www.bakersteelcap.com
Enquiries:
Baker Steel Resources Trust Limited
+44 20 7389 8237
Francis Johnstone
Trevor Steel
Shore Capital
+44 20 7408 4050
Henry Willcocks (Corporate Broking)
Gillian Martin, Daphne Zhang
(Corporate)
Adam Gill (Sales)
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 are set
out in the Company's Prospectus dated 26 January
2015.