Acquisition

RNS Number : 4917K

Baker Steel Resources Trust Ltd

25 June 2014

 



BAKER STEEL RESOURCES TRUST LIMITED

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

24 June 2014

Acquisition of Additional Stake in Polar Silver

Baker Steel Resources Trust Limited (the "Company") announces that it has acquired US$2,500,000 of convertible loans to ZAO Argentum and 500 shares in Polar Silver Resources Limited ("Polar Silver") for £1.32 million. The consideration has been satisfied through the issue of 2,259,357 new Ordinary Shares of the Company (the "New Shares") to the vendor at a price of 58.5 pence per share (equivalent to the latest NAV per Share of the Company).

Polar Silver is a holding company which holds 100% of ZAO Argentum, the holder of a 50% interest in the Prognoz silver project in Russia. A NI 43-101 compliant report by independent consultant Micon International Limited ("Micon"), estimated an Indicated Resource of 5.86 million tonnes of ore grading 773 g/t silver containing 146 million ounces of silver and Inferred Resources of 9.64 million tonnes of ore grading 473 g/t silver containing 147 million ounces of silver at Prognoz. A NI 43-101 compliant preliminary economic assessment (PEA) by Micon envisages a mine producing an average of 13 million ounces of silver per annum over a 16 year mine life, with peak production of 24 million ounces of silver in year 4.

Following the acquisition of the above interests, upon conversion of all convertible loans to ZAO Argentum and Polar Silver, the Company's interest in Polar Silver will increase from 15.0% to 21.2%.

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 30 June 2014.

Following Admission, the number of Ordinary Shares that the Company will have in issue will be 68,401,890.

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]

 

END

 

 

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