Navigator Resources Limited (ASX: NAV) has established itself as a mid-tier Western Australian gold producer following the commencement of gold production at its flagship 100%-owned Bronzewing operations in April 2010.
Navigator Resources lodges prospectus for Kimberley Rare Earths IPO spin-off
Navigator Resources (ASX: NAV) has moved another step closer to spinning off the Cummins Range Rare Earth Project into a new ASX listed company, by lodging a prospectus with ASIC.
The new company is set to be called Kimberley Rare Earths, and aims to raise around $14.3 million through the IPO.
Navigator shareholders are eligible for one Kimberley Rare Earths share for every ten Navigator shares.
Kimberley Rare Earths will be issued at $0.20.
The record date for the pro rata distribution of free Kimberley Rare Earths shares to eligible Navigator shareholders is 16 May 2011.
The new company has been incorporated to be a specialist rare earths vehicle with an initial 25% direct interest in Navigator’s Cummins Range Rare Earth Project in the Kimberley region of Western Australia.
Kimberley Rare Earths will also have the right to earn up to an 80% interest in the project through funding exploration and development activities through to production of a Bankable Feasibility Study.
Cummins Range is one of only a few Australian rare earths projects that has a Resource reported under the JORC Code of; 4.17 million tonnes at 1.72% total rare earth oxide for 71,700 tonnes total rare earth oxide, 11.0% P2O5 and 187ppm U3O8.
