Navigator Resources has completed an $11 million capital raising via a placement to institutional and sophisticated investors and hopes to use the funds for further exploration and to pay down debt.
Navigator Resources has completed an $11 million capital raising via a placement to institutional and sophisticated investors and hopes to use the funds for further exploration and to pay down debt.
Navigator Resources has completed an $11 million capital raising via a placement to institutional and sophisticated investors and hopes to use the funds for further exploration and to pay down debt.
BGF Equities organised the placement of 50 million shares at an issue price of 22 cents per share.
The company will undertake the placement in two tranches, but the second tranche is subject to shareholder approval.
The company said the money will be used to fund exploration at its Bronzewing mine, an engineering scoping study to treat Cardinia supergene ore and to fund exploration at Leonora to infill drill at Cardinia.
See company statement below:
Navigator Resources Limited (ASX: NAV) announces that it has raised A$11 million in a placement to institutional and sophisticated investors. The placement was arranged and managed by BGF Equities.
The placement is for 50 million shares at an issue price of 22 cents per share. The placement will be made in 2 tranches. The placement of the first tranche of 25 million shares will be made by 1 November 2010 within Navigator's existing 15% placement capacity.
The second tranche will be subject to shareholder approval which is scheduled to take place at the Company's AGM scheduled for 26 November 2010. The Notice of Meeting and proxy forms for the AGM will be posted shortly.
NAV is very keen to maintain its growth momentum and the funds raised from the placement will be used for the following purposes:
- Exploration at Bronzewing aimed at increasing mine life to 10 years through the testing of high priority targets;
- Engineering scoping study for low capital, purpose built processing facility to treat Cardinia supergene ore;
- Exploration at Leonora to infill drill at Cardinia and follow up previous shallow high grade drill intercepts;
- Early repayment of a portion of outstanding debt to RMB; and
- General working capital.