27th Apr 2016 11:24
LONDON (Alliance News) - Baker Steel Resources Trust Ltd on Wednesday said it is set to increase its interest in Polar Silver Group in order to further the Prognoz silver project in Russia.
Polar Silver Resources Ltd is the largest investment in Baker Steel's portfolio at 26% of its net asset value, as of the end of March. The company is incorporated in the British Virgin Islands and owned 100% of ZAO Argentum, which in turns holds a 50% indirect stake in the Prognoz silver project in Russia.
Baker Steel said its investment manager has advised there is a disagreement over the strategy for developing the Prognoz asset between another Polar Silver shareholder and the holder of the other half of the Prognoz asset.
In order to remove the uncertainty this disagreement creates, Baker Steel said it will increase its stake in Polar Steel in order to get a majority interest in the company, allowing work on the Prognoz asset to continue.
Assuming the deal completes, Baker Steel will have an effective equity interest in the Prognoz asset of 30-35%, it said.
Baker Steel shares were down 5.6% to 17.00 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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