Navigator Resources have tumbled by more than 30 per cent after it announced it had won a 12-month extension to its finance facilities and revised the terms of its rights issue down to 4 cents per share.
Navigator said in a statement to the Australian Securities Exchange today that financier RMB Australia had granted a partial extension of its current $11.1 million debt facility to August 2, 2011.
Navigator also said it had re-priced its rights issue first announced on June 20, under which it seeks to raise a minimum of $20 million, and up to $31 million.
Instead of the one for one rights issue priced at 6.8 cents announced last week, Navigator will now seek to raise the funds through a five for three renounceable rights issue priced at 4 cents per share.
At 9:40AM(WST) Navigator's stock had shed 33.9 per cent, to trade at 3.9 cents.
"The company has worked closely with its underwriters Paterson Securities to reconfigure the terms of its previously announced rights issue to take into account recent general market weakness and the RMB debt-rescheduling," Navigator said in its statement.
"The current rights issue terms enable Navigator to proceed with confidence towards accessing ore from the Cockburn Pit and upcoming strong cash flows from early 2012."
Navigator said the completion of the rights issue would allow it to begin paying down its debt facility, with $5.6 million due August 2.
Navigator said if the issue closes fully subscribed, it would repay the full amount.
The gold miner is seeking to raise the funds to develop its Cockburn pit at the Bronzewing gold project and has estimated producing 300,000 ounces of gold with a cash flow around $100 million over the next three years.
"There is considerable potential for the life of teh Cockburn pit to be estended with a higher gold price, as well as significant potential for underground mining," Navigator managing director David Hatch said.
