Prospector Mark Creasy has cleared the way for Navigator Resources to acquire the Bronzewing gold operation after deciding not to exercise his pre-emptive rights.
Prospector Mark Creasy has cleared the way for Navigator Resources to acquire the Bronzewing gold operation after deciding not to exercise his pre-emptive rights.
Mr Creasy had final say in Navigator's acquisition of the Western Australian mine, which has been on care and maintenance for over a year as its previous owner View Resources fell into administration.
No other parties have pre-emptive rights over Bronzewing.
Navigator said it is now focused on obtaining the funding to complete the purchase and to re-start production at the mine.
Navigator bought Bronzewing for $9.55 million and will also pay $6.45 million in environmental bonds.
Earlier today, Mr Creasy announced he and Apex Minerals will spin off their prospective nickel assets in WA into Croesus Mining, which will be restructured and renamed to Sirius Resources.
Mr Creasy is a major shareholder in Croesus Mining.
Navigator's announcement is below:
Navigator Resources Limited ("Navigator", ASX: "NAV") is pleased to advise that a significant condition of its intended purchase of the Bronzewing Gold Project ("BWGP") has been cleared following agreement between Navigator and Mr Mark Creasy. As a result Creasy has not exercised his pre-emptive rights over certain of the project assets proposed to be purchased by Navigator. No other parties have pre removes all rights of this nature.
Further details as required will be released as soon as final documentation is executed between Navigator and Mr Creasy.
Navigator is now focused on obtaining the funding to complete the purchase and to provide adequate working capital to commence and sustain acquisition timeline between Navigator and the Bronzewing Administrator is 31 July 2009 with settlement due to take place on 30 August 2009.
The Company has commissioned Coffey Mining to undertake an independent reserves and resources as well as Navigator's mining and processing plans for the BWGP. This process is well advanced and their report, along with detailed financial models, will shortly be distributed to a shortlist of financiers.
As advised in the ASX Release of 2 April 2009, the agreed purchase price for the BWGP is $9.55m plus environmental bonds of $6.45m. In addition, the Company will raise funds for the development and recommissioning of the BWGP as a gold producer. The exact additional funding and the mixture of debt and equity will be determined from the financial models and in consultation with our financial advisors.
As part of this process, the Company has appointed Optimum Capital Pty Ltd ("Optimum") as advisors to assist in the sourcing and evaluation of financing for BWGP. Optimum specialises in arranging finance for mining projects.
