31/01/2013 - 15:24

Navigator secures $3m to deal with crushing plant failure

31/01/2013 - 15:24

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Navigator secures $3m to deal with crushing plant failure

Navigator Resources has sourced an additional $3 million in working capital from major shareholder Au Mining, to cover a funding shortfall created by operational issues at its Bronzewing gold mine north east of Leinster.

Navigator announced today that Au Mining had agreed to increase the project's working capital facility from $5 million to $8 million.

The company said mechanical issues with its crushing facility at Bronzewing required the introduction of a mobile crushing plant at the site.

The mobile facility will allow Navigator to perform maintenance on the crusher at Bronzewing while maintaining supply of crushed ore to the mill.

Also today, Navigator said discussions with Au mining surrounding an additional $20 million in project finance had advanced, with an agreement expected to be reached “promptly”.

“Due to the cash flow impact of the current issues at the Bronzewing processing facility, approximately $5 million of the $20 million will be required to cover the company’s cash needs in February 2013,” the company said in a statement.

At close of trade today, Navigator shares were steady at 0.01 cents. 

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