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

Azarga's Unkur copper-silver project has an NPV of US$147.5mln.
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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.

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