Global Resources IT completes its write-up of its Kalia holding – On 26 February 2018, Kalia Limited announced that, subject to shareholder approval, it had agreed to acquire Global Resources Investment Trust (GRIT)‘s interest in Kalia Holdings Pty Ltd, thereby consolidating the non-landowner interests in Bougainville Exploration Licences in Papua New Guinea.
This followed the announcement by GRIT in September 2017 (which we reported at the time – click here) that it had invested in Kalia Holdings Pty Ltd. It is a private Australia company that is the parent company of a Papua New Guinean registered subsidiary Kalia Investments Ltd. Kalia Investments Limited holds contractual rights to explore for minerals and develop mines in the Tore district of North Bougainville, where they are expected to find gold, copper and other minerals. Kalia will have 75% of the mining interests and the remaining 25% will belong to the landowners.
GRIT will transfer its interest in Kalia Holdings Pty Ltd to Kalia. As a result Kalia will hold 100% of Kalia Holdings Pty Ltd. On completion of the transaction, GRIT will hold 21.28% of the issued share capital of Kalia. GRIT will also be able to participate in any further capital ratings over the next five years and appoint a non-executive director to the Board of Kalia.
GRIT has been valuing its investment in Kalia Holdings Pty Ltd on the “see through” valuation of the number of shares in Kalia Limited if it had accepted the offer from Kalia Limited. The new position effectively doubles the value of its holding and has increased the NAV.
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GRIT’s investment objective is to generate medium and long-term capital growth through investing in a diverse portfolio of primarily small and mid-capitalisation natural resources and mining companies, which are listed/quoted on a relevant exchange.
GRIT – Global Resources IT completes its write-up of its Kalia holding