Baker Steel Resources (BSRT) has announced that it and the other 3 main shareholders of Nussir ASA, together representing 70.8% of Nussir’s issued share capital, have agreed to sell their shares in Nussir to Blue Moon Metals Inc. The transaction values Nussir at US$55.3m and is conditional upon Blue Moon: raising between US$21.4m and US$35.7m from the issue of new equity; the signing of definitive agreements; the agreement by over 90% of Nussir shareholders to the deal; and approval from the TSX (Blue Moon is listed on the TSX-V stock exchange). Completion is expected around the end of February 2025.
Nussir is a private company that owns 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$191m with an IRR of 22% based on a copper price of US$8,000 per tonne.
BRST says that the transaction strengthens the immediate prospects for its investment in Nussir by bringing it together with experienced mine and project builders, two other prospective projects, along with financing and a TSX listing. Depending on the final amount raised by Blue Moon, BSRT is expected to hold between 10-12% of the enlarged Blue Moon share capital on completion.
BSRT currently holds 21.6% of Nussir which, on the basis of its last published net asset value (NAV), represents approximately 4.1% of BSRT’s NAV with a carrying value of £3.6m. BSRT says that it will review its carrying value of Nussir at the end of November 2024 to include a discount to the offer price to reflect the conditions of the transaction, particularly for the fact that the shares it acquires in Blue Moon will be subject to a lock-up.
