Metaliko swoops on Navigator's Bronzewing
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Junior exploration firm Metaliko Resources has bought failed goldminer Navigator Resources’ Bronzewing gold project near Leinster for $4.8 million.
The deal has sent Metaliko shares soaring, with the company’s stock closing trade today up 140 per cent, at 2.4 cents.
The move is also particularly ambitious for Metaliko, which had a market capitalisation of just $1 million prior to today's share price spike.
The transaction includes milling facilities and associated infrastructure on site.
Under the agreement, Metaliko will also be required to arrange the release to Navigator’s administrator of $7.08 million in bank deposits previously earmarked to cover environmental bonds.
The Bronzewing operation has been in mothballs since April last year, after Navigator slipped into administration.
Metaliko said the acquisition hinged on it raising $6.9 million through an equity raising to cover the purchase price and boost working capital.
It will also be subject to shareholder approval.