REG - Baker Steel Res.Tst. - Conditional agreement to sell Nussir ASA

Baker Steel Resources TrustAnnouncement

29/11/2024 07:00

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RNS Number : 0952O  Baker Steel Resources Trust Ltd  29 November 2024

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
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbluemoonmetals.com%2F&data=05%7C02%7Cfjohnstone%40Bakersteelcap.com%7Ccf90d3eba013483dd2b708dd0f924d25%7C27ead8fb162e4d4091faa254dfbebf03%7C0%7C0%7C638683844260226157%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=SlA9qUUHARNCC6gKRgsxfKkwcyUXdcTsVHronK73FpE%3D&reserved=0)

 

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
(https://url.avanan.click/v2/___http:/www.bakersteelcap.com___.YXAxZTpzaG9yZWNhcDphOm86ZmUzODFiN2EzNzNmYTc3OGMyYTEwNTZhYjZhMTc2YmM6NjoxNmVhOjljZDlmYWNiODEwMmNmZDJjNzEwNmFhMWNhN2Q1MTdkOTlhZmJlMTZmZWE5MTA5YjIyN2ZiZjdjNjA3YjU0YTM6cDpGOk4)

 

 

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.

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