Baker Steel Resources Trust’s Board has announced that, following consultation with a number of the Company’s largest Shareholders, it is seeking approval from Shareholders for an amendment to the Company’s investment policy. The amendment, if approved, will enable the Company to increase its existing investment in Polar Silver Resources Limited and/or any company within its group (the Polar Silver Group) so that such investment may represent up to 35 per cent. of the value of the Company’s gross assets at the time of the relevant transaction.
As the Investment Policy Proposal involves a material amendment to the Company’s existing investment policy, the approval of the holders of Ordinary Shares is required in accordance with the Listing Rules.
Polar Silver is a private company which holds a 50% indirect interest in the Prognoz silver project, 444km north of Yakutsk in Russia. An NI 43-101 compliant report by independent consultants Micon International Limited in July 2009, estimated an indicated resource of 5.86 million tonnes of ore grading 773 g/t silver containing 146 million ounces silver and inferred resources of 9.64 million tonnes of ore grading 473g/t silver containing 147 million ounces silver at Prognoz. An NI 43-101 compliant preliminary economic assessment by Micon envisages a mine producing an average of 13 million ounces of silver per annum over a 16 year mine life.
BSRT : Baker Steel calls meeting to approve Polar Silver purchase