08/04/2014 - 12:02

Kin eyes Navigator's Leonora project

08/04/2014 - 12:02

Bookmark

Upgrade your subscription to use this feature.

Perth-based explorer Kin Mining has agreed to purchase the Leonora gold project in the Goldfields from the administrators of Navigator Resources for $2.7 million.

Kin eyes Navigator's Leonora project
Trial mining at the Leonora gold project in the Goldfields.

Perth-based explorer Kin Mining has agreed to purchase the Leonora gold project in the Goldfields from the administrators of Navigator Resources for $2.7 million.

Kin told the market it had executed a binding term sheet to acquire all the issued shares of Navigator subsidiary Navigator Mining.

The deal is conditional upon Kin conducting due diligence and obtaining shareholder approval for the transaction.

Kin must also raise $5 million and pay a non-refundable $200,000 deposit.

Navigator conducted trial mining at Leonora in 2010, producing more than 7,000 ounces of gold.

A pre-feasibility study found that a 53,000oz per year gold mine could be run at Leonora for six years with a $45 million capital investment.

Kin said the acquisition would complement its current prospects in the Goldfields.

"Subject to the successful completion of the acquisition, KIN intends to immediately assess the project areas and proceed to improve the status of the JORC resources with the intention of establishing an economical mining operation," the company said.

Pitcher Partners managing director Bryan Hughes was last year appointed voluntary administrator of Navigator after the company struggled to raise funds to repay its debt.

Navigator's Bronzewing gold project near Leinster was set to be bought by Metaliko Resources for $4.7 million earlier this year but Metaliko told the market last week that it had been unable to raise sufficient funds to complete the purchase after the underwriter to a rights issue terminated its obligations. 

Metaliko said it was in continuing discussions with Navigator's administrator regarding the acquisition.

Kin shares were trading 6 per cent higher at 26.5 cents at 11:56am WST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options