Navigator Resources shares have tanked after the struggling gold miner unveiled a highly-dilutive $16 million rights issue to stave off collapse.
Terms of the issue are 7.2 shares for each Navigator share held, priced at 0.1 cents per share.
The company’s stock tumbled 62.5 per cent on the ASX today, finishing trade at 0.3 cents.
Navigator also announced today its short term finance facility had been increased to $13 million.
“Given the distressed financial position of the company, the board deemed that the only viable alternative to ensure the company’s continuation as a going concern was to enter the finance facility and to proceed with the rights issue,” Navigator said in a statement.
“A failure of the company to proceed on this basis would have, in the opinion of the board, resulted in voluntary administration being the only other available course of action.”
