20/08/2012 - 13:56

LionGold backs out of Navigator takeover

20/08/2012 - 13:56


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LionGold backs out of Navigator takeover

Navigator Resources has been left high and dry by its potential white-knight, with Singapore-based investment house LionGold Corporation deciding not to make a formal takeover proposal for the embattled Western Australian gold miner.

Navigator announced earlier this month that it had received a non-binding takeover proposal from an unnamed company, which was later revealed to be LionGold.

But today Navigator said it had been notified by LionGold that the suitor would not make a formal takeover bid.

The company said its focus would continue to be on its previously announced $16 million rights issue, which it first discussed in late July.

Terms of the issue, which is highly-dilutive and understood to be a last-ditch effort to stave off collapse are 7.2 shares for each Navigator share held, priced at 0.1 cents per share.

Navigator’s stock last traded at 0.2 cents.


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