Navigator in talks to line up $US12m

Navigator Resources says it is in advanced negotiations with a Canadian resources investment firm for a $US12 million debt facility and a gold sale agreement covering production from its Bronzewing gold mine in Western Australia.

Navigator announced today it was deep in negotiations with Canada’s Waterton Global Value, to boost its general working capital for the development of the Bronzewing project.

By close of trade today, Navigator stocks had gained 7.1 per cent, to trade at 1.5 cents.

As part of the arrangement, Navigator has already signed up for a $US1.5 million debt facility, which has already been made available for draw-down.

Navigator also said it had signed a gold sale agreement with Waterton, which gives the Canadian fund the right to purchase all gold produced from Bronzewing for an 18 month period, up to 150,000 ounces of gold.

“the provision of the debt facility will allow the company to continue the development of Bronzewing as well as commit funding for exploration activities, with the latter having been restricted as available cash was directed at Bronzewing,” managing director David Hatch said in a statement.

“We are mindful that this is also preferable for shareholders as there is no equity component and hence no dilution.

“It is a mark of confidence in the Bronzewing project and the company’s management that we have been able to establish a relationship with a respected and experienced international mining investment group like the Toronto-based Waterton.”