BAKER STEEL RESOURCES TRUST LTD SIGNS BINDING LETTER OF INTENT IN RESPECT OF AZARGA METALS CONVERTIBLE LOAN

(Incorporated in Guernsey with registered number 51576 under the provisions of The Companies (Guernsey) Law, 2008 as amended)

VANCOUVER, BC, April 19, 2022 /CNW/ - Further to the press release issued by Azarga Metals Cop. ("Azarga Metals") on 19 April 2022 ("Azarga Press Release") in respect of the execution by Baker Steel Resources Trust ("BSRT") of a binding letter of intent (the "Binding LOI") pursuant to which, subject to satisfaction of certain conditions, BSRT has agreed to convert the US$3.5 million loan (the "Loan") owing to it by Azarga Metals, BSRT wishes to correct certain calculation errors disclosed in the Azarga Press Release.

The Loan will be converted at a fixed Canadian dollar equivalent value of C$4.7 million, with a conversion price of C$0.10 per share for a total issue of 46,925,500 common shares of Azarga Metals (the "Shares").

BSRT currently owns 11,601,786 Shares, representing 8.9% of the issued and outstanding common shares of Azarga Metals.  Upon conversion of the Loan, BSRT will acquire an additional 46,925,500 Shares, representing 36.0% of the issued and outstanding common shares of Azarga Metals (pre-conversion), to own an aggregate of 58,527,286 Shares, representing 33.0% of the issued and outstanding common shares of Azarga Metals and an increase of 24.1% of the enlarged share capital from the percentage of the Shares BSRT currently owns, pre-conversion.

BSRT also currently owns 20,440,914 warrants of Azarga Metals, each exercisable at a price of C$0.10 per warrant until December 31, 2022.  Following conversion of the Loan and assuming exercise by BSRT of these warrants, BSRT would own 78,968,200 Shares of Azarga Metals, representing an aggregate ownership interest of approximately 39.9% of the issued and outstanding common shares of Azarga Metals (post-conversion and post-issuance of the warrants).

Depending on market conditions and other factors, BSRT may from time to time acquire and/or dispose of securities of Azarga Metals or continue to hold its current position.

A copy of the early warning report required to be filed with the applicable Canadian securities commissions in connection the transaction will be available under the Company's profile on SEDAR at www.sedar.com and can be obtained by contacting Tino Isnardi at [phone]. 

SOURCE Baker Steel Resources Trust Limited

Arnold House, St. Julians Avenue, Guernsey, GY1 1WA; Azarga Metals Corp., Unit 1 - 15782 Marine Drive, White Rock, BC, V4B 1E6, Canada