Navigator Resources says it is set to eliminate its debt after Patersons Securities found investors to top up the balance of a $32.6 million rights issue, following an initial shareholder take-up of just over $20 million.
The gold miner announced late last week that its existing shareholders had taken up $2,835 more than the rights issue’s minimum threshold of $20 million.
With the additional take-up by Patersons’ clients, Navigator said it would retire its $11.1 million debt facility with RMB Australia this week, leaving the company debt free and unhedged.
Managing director David Hatch said the company was pleased at the level of shareholder take-up and the additional support from Patersons.
The funds raised will also be applied to development of the Cockburn pit at Navigator’s flagship Bronzewing gold project.
Mr Hatch said the company was on track to produce between 75,000 and 80,000 ounces of gold from Bronzewing in 2011-12.
“The company continues to make good progress at the Cockburn Pit, and we look forward to providing market updates in the coming weeks,” Mr Hatch said.
Navigator, which is targeting annual production of 150,000 ounces from its Bronzewing and Leonora gold projects, was forced to restructure the rights issue twice over the past two months.
The gold miner’s share price tumbled from around 12.5 cents to 6.2 cents when it first announced it would seek to raise the $32 million at 6.8 cents per share on June 20.
Its stock fell further on June 27 after it announced it had re-priced its offering, and sought to raise the funds through a five for three rights issue at 4 cents per share.
The final value of the rights issue ended up being a 7 for 2, 2 cents per share offer, as announced on July 8.
At 11:38AM (WST) Navigator’s stock was up 7.6 per cent, to 2.8 cents.
