Baker Steel Resources Trust has announced that it has acquired a further 5.4% interest in Norwegian Copper company, Nussir ASA (Nussir), to add to the 9.8% of Nussir it already holds, for a consideration of £625k. The company says that 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.
According to the trust, 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 74m tonnes grading 1.1% copper. The trust says that 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.
The trust says that, 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. It says that this followed several years of exhaustive environmental studies and consultation and, in its view, 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.
Baker Steel Resources Trust increases stake Nussir : BSRT