Navigator Resources
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' Kimberley Rare Earths IPO substantially oversubscribed
Tuesday, May 03, 2011
Navigator Resources' (ASX: NAV) prospectus for the IPO of Kimberley Rare Earths (ASX: KRE) has been oversubscribed for both the priority offer and the public offer.
Navigator plans to spin off its Cummins Range Rare Earth Project into a new ASX listed company through the Kimberley Rare Earths IPO and dispatched the prospectus to Navigator shareholders on 5 April 2011.
BGF Equities are the lead managers to the IPO. Kimberley hopes to raise $14.3 million through the IPO process to fund exploration activities at Cummins Range in Western Australia.
In order to assist with the extra demand, a supplementary prospectus has been issued to accept offers for an additional 19,635,234 shares in Kimberley which was reserved under the prospectus for Navigator option holders to exercise options into shares to participate in the priority offer.
The company stated "to the extent that these options were not exercised, this capacity remains available. This extra issue will still not satisfy demand and there will be a scale back applied to both the priority and public offers."
Kimberley has been incorporated to be a specialist rare earths company with an initial 25% direct interest in Cummins Range.
The project has an Inferred JORC Resource of 4.17 million tonnes at an average grade of 1.72% total rare earth oxide (TREO) for 71,700 tonnes TREO, 11% phosphorous and 187 parts per million uranium.
Cummins Range is one of only a few Australian rare earths projects that has a JORC resource.
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