Navigator Resources has signed an agreement for a $US12 million debt facility with Canada’s Waterton Global Value.
The finance facility, which Navigator announced it was negotiating for last month, will be used to fund the development of the Bronzewing gold project in Western Australia.
The Perth-based miner said the loan would be for a period of 18 months, with repayments commencing on December 31.
The loan will be repaid in ounces of gold based on the spot price multiplied by 0.9, unless Waterton requests repayments made in cash, Navigator said.
Navigator also provided an update on a gold sales agreement covering production from Bronzewing, saying it had commenced deliver of gold to Waterton and had received the first sales proceeds under the contract.
The gold sales agreement was also announced early last month.
“We are again impressed with the rate of progress achieved by Waterton and Navigator executives and their respective legal teams and we look forward to further developing our relationship with Waterton,” Navigator managing director David Hatch said in a statement.
Navigator stocks have jumped on the ASX today, up 16.6 per cent at 1:45PM WST, trading at 1.4 cents.