22 September 2017
GLOBAL RESOURCES INVESTMENT TRUST PLC
("GRIT" or the "Company")
Early this year, Global Resources Investment Trust plc ("GRIT") completed an A$1,250,000 investment in Kalia Holdings Pty Ltd ("Kalia"), a private Australian 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 Tinputz district of North Bougainville, Papua New Guinea which is prospective for gold copper and other minerals. The area over which Kalia holds contractual rights is known as the Tore Project.
Bougainville is one of the last undeveloped mineralised provinces of the world. The island straddles the Pacific "Ring of Fire" tectonic plate boundary, an ideal setting for the porphyry copper-gold and associated epithermal gold mineralisation. Rio Tinto developed the Panguna Mine (the world's largest copper mine) in the 1960s until it shut down in 1989. During its 17 years of operation Panguna Mine produced 3m tonnes of copper and 9m ounces of gold.
Since GRIT invested in Kalia there have been several significant developments. The moratorium on exploration and mining, in place since 1971, was lifted and the President of the Autonomous Bougainville Government announced that applications for exploration licences would be accepted. Kalia lodged applications for the Tore Project area on 19 June 2017, and in September 2017 Kalia completed mining warden hearings in the Tore Project area.
On 18 September 2017, GB Energy Limited (ASX: GBX) an Australian listed company exercised an option to acquire the outstanding share capital of Kalia Holdings Pty Ltd, for the issue of new GB Energy Limited shares.
GB Energy Limited has made an offer to GRIT of new shares for its interest in Kalia Holdings. At this stage, GRIT will not be accepting this offer but will instead be entering into a Shareholder's Agreement with the company.
Going forward GRIT's investment in Kalia will be valued on the "see through" value of the offer of GB Energy shares, which were trading at A$0.015 on 21 September 2017. This is expected to give the investment a value of at least A$4.4m (previously A$1.25m).
As at 21 September 2017, GB Energy has changed its name to Kalia Limited (ASX: KLH)
Further announcements will be made in due course.
David ("Sam") Hutchins
Tel: +(0) 20 7290 8540
Maitland Administration Services (Scotland) Limited
Company Secretary and Administrator
Tel: +(0) 131 550 3760
This information is provided by RNS