SINGAPORE, March 24, 2021 – Pelagic Resources Pte Ltd is proud to announce that we have acquired a strategic stake in Bauba Resources (“Bauba”) (JSX: BAU) through a share subscription.

The Subscription Shares were issued at a price of 31 cents per share, being a 4.13% discount to the 30-day volume-weighted average price at the close of business on Tuesday, 19 January 2021. The Subscription Shares represent 23% of the issued share capital of Bauba and were acquired for ZAR35m.

Additionally, Pelagic has also secured an evergreen off-take agreement to market all of Bauba’s current and future metallurgical and chemical chrome ore production which will secure Pelagic’s supply for the foreseeable future. Pelagic’s CEO, Thomas Baring, has joined Bauba’s Board of Directors.

“We are delighted to strengthen our relationship with Bauba via our investment into the Company” Pelagic’s CFO, Dinos Demetriades, stated. “We are confident in Bauba’s potential given its existing and pipeline of chrome and PGM projects, and we are happy to support them as an investor, lender & exclusive marketing agent and now most importantly, as a fully aligned partner.”

Pelagic’s CEO Tom Baring commented, “2020 was a transformational year for Pelagic, culminating in our acquisition of a strategic stake in Bauba. This alignment of the two businesses will cement the foundations of a multi-resource, multi-product platform with the growth potential to become a new major low-cost player in the specialist ores and stainless steel raw materials sector.”