Sign up Australia
Proactive Investors - Run By Investors For Investors

Navaho Gold in proposed Argentinian coal acquisition

Navaho Gold in proposed Argentinian coal acquisition

Navaho Gold Limited (ASX: NVG) should trade firmer after its execution of a non-binding Term Sheet for the acquisition of Excarb Pty Ltd, a company with rights to acquire several prospective coal projects in Argentina.

The acquisition will be scrip based, retaining Navaho's existing cash reserves - Navaho will issue 27,824,374 shares to the vendor as consideration, subject to shareholder approval.

The coal projects cover both thermal and coking prospects in Tertiary and Triassic aged coal measures on the eastern side of the Andes.

Excarb and Navaho have identified potential for significant tonnages of thermal and coking coal in mining friendly environments in the San Juan and Rio Negro provinces.

The depths and dips of the coal seams are such that a good proportion of any coal reserves defined could be mined by
open-cut, lending to a low cost operation.

In addition, both projects are within close proximity to access to existing rail networks with links to industrial areas and ports.

Access to developing markets for local Argentinean power generation, steel making, mineral processing, general industry
and export applications are a key drawing card for this acquisition and its location.

The coal occurs in 6 main banded seams which can be in excess of 2 metres thick, with coal content making up approximately 90% of the seam.

The seams dip at 5 to 15 degrees to the west and extend over 50 kilometres of strike length north to south on the tenements.

Navaho is capitalised at just $1 million, offering plenty of potential upside.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Register here to be notified of future DHR Company articles
View full DHR profile

Dark Horse Resources Timeline

Related Articles

August 05 2016
NQ Minerals anticipates early cashflow from high margin silver stockpiles
February 28 2017
Last week, Royal Road brought in C$3.6mln to finance its Colombia plans and anticipated operations in Nicaragua
February 03 2017
Anglo Pacific's move into Canadian uranium is a major statement of intent

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.