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Navigating to an agreement

NAVIGATOR RESOURCES founder Tom Sanders has accepted an offer for his company $3 million below what he had hoped to achieve just two months ago.

After failing to raise the $4.5 million through an initial public offer to sell half of the exploration company, Mr Sanders has accepted what he says is a mutually beneficial conditional offer from Golden Valley Mines Limited. The offer, amounting to $1.5 million, will mean the $2.5 million raised through the IPO will be handed back to investors, who will be given first bite at a capital raising by Golden Valley.

The conditional offer is subject to shareholder approval and requires Golden Valley to raise $1 million to fund further exploration. A general meeting is likely to be called early in the new year.

The company has confirmed it already has raised $430,750, with the balance to come through a prospectus offering. Documents currently are being prepared for release following the shareholder meeting.

Navigator Resources will comprise around 30 per cent of the total merged new entity.

Two of Navigator’s eight Kimberley projects are in joint venture with Canadian giant Falconbridge (Australia) Pty Ltd and Anglo American Exploration (Australia) Pty Ltd, which can earn a 70 per cent interest in nickel and platinum metals on the basis that they spend $3 million.

Other projects include two newly identified gold-copper systems with numerous priority drill targets.

Navigator managing director Tom Sanders will be appointed to the merged company board as executive director, exploration, and the company will hand over more than $2.75 million in interest to the rest of the company.

Mr Sanders said while it was unfortunate the market had not helped the company raise the hoped for $4.5 million, it still ended up being a win-win outcome for both companies.

Golden Valley non-executive director Peter Cordin said the merger fitted in nicely with the new direction of the company, which has meant a change in focus away from exploration in Indonesia to Australia.

Mr Cordin said that, in spite of low commodity prices, it was encouraging to see that many explorers were having success.

“It’s nice to see that some exploration is still having success and it’s encouraging to see that there is support for the exploration industry from investors,” he said.

“I would expect this to continue to grow over the next 12 months.”

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