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Baker Steel Resources Trust Ltd on Friday said it has agreed to sell its close to 22% stake in Norway-based copper project owner Nussir ASA to Canadian mineral exploration and development company Blue Moon Metals Inc.
The transaction values Nussir at $55.3 million and is part of a broader agreement involving Nussir’s other major shareholders, who together hold 71% of the company.
The investor, which backs equities, loans, or related instruments of natural resources companies, said the sale is contingent on Blue Moon raising a minimum of $21.4 million and a maximum of $35.7 through a new equity issue, securing over 90% approval from Nussir’s shareholders, obtaining TSX Venture Exchange approval, and signing definitive agreements.
Completion is expected by the end of February 2025.
Nussir owns a fully electrified copper mine project in northern Norway, projected to produce 14,000 tonnes of copper annually over a 14-year mine life. A 2023 definitive feasibility study valued the project at a net present value of $191 million with an internal rate of return of 22%, based on a copper price of $8,000 per tonne.
Upon completion, Baker Steel expects to hold a 10-12% stake in the enlarged Blue Moon Metals. It will review the carrying value of its Nussir holding, currently valued at £3.6 million and representing 4.1% of the trust’s net asset value, to account for transaction conditions and the lock-up period for Blue Moon shares.
Shares in Baker Steel were up 0.6% at 57.82 pence each in London on Friday afternoon.
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