Navarre Minerals Limited (ASX: NML) is an ASX listed minerals exploration company, constantly searching for gold deposits and has a portfolio of early to advanced stage gold projects in Victoria. The company is currently focusing on three gold projects and a copper project namely Tandarra Gold project, St Arnaud Gold project, Stawell Corridor Gold project and Western Victoria Copper project.
The company has disseminated information regarding its binding commitments received from private investors for a share placement scheme.
It will be issuing 80 million shares which will help the company to raise committed $6 million before cost placement amount. The category of shares would be fully paid ordinary shares. The shares will be issued to experienced and qualified institutional investors at a price of $0.075 per share.
The working capital position of the Company is expected to be improved from the proceeds from the placement. It will also help the company to go along with the exploration programs at the Tandarra Gold Project and Stawell Gold Corridor and also proceeding with exploration at Glenlyle silver-gold discovery.
Details of the Placement
The company has agreed to issue 80 million fully paid ordinary shares in the Company at an issue price of $0.075 to institutional and sophisticated investors in Australia and overseas which will help to raise $6 million before costs. Once the shares are issued to the investors, the Placement Shares will rank fairly alongside existing fully paid ordinary shares on issue.
The Placement is within the Company’s accessible limit under ASX Listing Rules in accordance with Listing Rule 7.1 (43,698,975 shares) and 7.1A (35,501,025 shares). The Settlement of the Placement is relied upon to happen within 7-10 days.
The company’s two largest shareholders VBS Exchange Pty Ltd and Kirkland Lake Gold Ltd have subscribed for approximately $1.3 million of the Placement to maintain their respective 10% interests in Navarre. This subscription amounts to 21.1% of the entire placement.
An interest of participation in the equity raising has also came in from the board of directors of the company on the same terms as the Placement for $60,000. There is no shareholder approval required for the placement; however, the Directors subscription requires shareholder approval which would be concluded in an extraordinary general meeting planned to take place in May 2019.
Mr Geoff McDermott, Managing Director of Navarre Minerals stated, the company is delighted with strong support for capital raise. It has exhibited high-grade gold at shallow levels at Resolution lodes, the Adventure and at Langi Logan within the Stawell Gold Corridor Project. These discoveries have common geological analogy to the nearby 4Moz Magdala gold deposit in Stawell which has increased the expectations of uncovering a new multi-million-ounce gold camp with the Stawell Corridor.
Upon financial close, the company will have approximately $8 million cash available for exploration which places it in the strongest position it had ever been, to increase drilling activity across the project portfolio to discover their potential. The drilling is already underway at the Tandarra Gold Project and in the next month drilling at Stawell Corridor Project will recommence.
On 21st March 2019, the company announced the completion of second phase of air-core drilling and received the highest grade of gold and silver from the Glenlyle project.
On 1 April 2019, the stock traded and closed 4.7% down at A$0.081, compared to the previous closing of A$0.085. Today, the stock is trading at A$0.083, up by 2.47% (As at 2:15 PM AEST, 2 April 2019).
There has seen a consistent rally witnessed in the last six months, giving the return of more than 58% while YTD return stands at 32.79%.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.