Proactive Investors - Run By Investors For Investors

Baker Steel completes on US$3mln investment into Azarga Metals

Azarga's Unkur copper-silver project has an NPV of US$147.5mln.
Baker Steel completes on US$3mln investment into Azarga Metals
The US$3mln convertible loan comes with warrants attached

Baker Steel Resources Trust Ltd (LON:BSRT) has completed on its agreement to invest into Azarga Metals Corp (CVE:AZR)

The deal was previously announced on 14 February.

Baker Steel will invest US$3mln into Canadian-listed Azarga Metals via an 8% secured convertible loan due 31 December 2022.

WATCH: Baker Steel Resources details 2019 investments and ambitions

The loan is convertible at C$0.14.

The first tranche of US$1mln of the US$3mln convertible Loan has been drawn, with the second tranche of US$2mln to be drawn no later than six months from now

 Azarga Metals will use the convertible Loan proceeds to undertake a second-phase drilling and exploration programme at the Unkur copper-silver project in Russia.

An existing preliminary economic assessment on Unkur gives the project a post-tax net present value at an 8% discount rate of US$147.5mln.

In addition to the loan, Baker Steel has been issued with 13.49mln warrants with an exercise price of C$0.17 per share. 

 It also gets an option to acquire a 2% net smelter revenue royalty on the Unkur Project from Azarga Metals for US$5mln.

Unkur currently has an NI 43-101 compliant resource of 724mln pounds of copper and 76.8mln ounces of silver, equating to a total silver equivalent resource of 182mln ounces.

View full BSRT profile View Profile

Baker Steel Resources Trust Timeline

Related Articles

Miner
June 07 2019
The mineral resources investor thinks the macroeconomic environment is favourable to the mining sector. It has four investments that over the next 18 months or so could see it repeat the success it had with its investment in the Prognoz silver project in Russia.
Braveheart
March 18 2019
"The investment portfolio, combined with substantial cash, continues to provide a solid underpinning to our balance sheet, and developments in our fund management business offer a new source of fund management revenue in the next financial year," Braveheart said.
The fund has doubled the capital it has raised to $100 million since September
April 11 2019
The company’s fund gives investors access to 3.25-6.45% returns over set terms.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use