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 raises A$1.01m for Bronzewing gold exploration
Navigator Resources (ASX: NAV), an emerging Perth-based gold production company, has raised A$1.01 million in a placement to new and existing shareholders with a total of 5,941,800 ordinary shares allocated at an issue price of 17 cents per share, and also intends to raise funds from a Share Purchase Plan (SPP).
NAV said it is very keen to maintain its growth momentum and the funds raised from the placement and SPP will be used for exploration at Bronzewing aimed at increasing mine life to 10 years through the testing of high priority targets.
David Hatch, managing director, said the company will also undertake an engineering scoping study for a low capital, purpose built processing facility to treat Cardinia supergene ore.
In addition, Navigator said exploration at Leonora is to infill drill at Cardinia and follow up previous shallow high grade drill intercepts.
Funds will also be used for general working capital.
The original prospector of the Bronzewing tenements, Mark Creasy, has taken a significant shareholding as one of the placement participants.
NAV intends to offer existing shareholders the opportunity to acquire shares in Navigator at the same 17 cents per share issue price via a SPP. This is in response to numerous shareholders requests and enables the company to pursue building initiatives.
Funds raised from the SPP will be capped at A$5.0 million. Participation will be on a first in basis, with details to be communicated to shareholders next week.
The SPP will be open to all shareholders in the company.
The Company acquired the Bronzewing Gold Project (located 960km northeast of Perth) in late 2009, and this Project recommenced production in April 2010.
First gold was poured at the Project on 21 April 2010. Annualised production capacity will be around 100,000oz, operating initially for five years. EBITDA for this operation is A$185 million at an average gold price of A$1,250/oz.
Navigator also continues to pursue development opportunities at the Leonora Gold Project (located 830km northeast of Perth) by initially carrying out a trial mining program.
Both gold projects are well located with respect to regional infrastructure, being in the heart of the northeastern goldfields region of Western Australia. All required mining permits and granted mining leases are in place both at Bronzewing and Leonora.
The company’s medium term objective is to target 150,000oz pa of gold production from these two open pit projects.
Navigator also maintains an interest in assets in the East Kimberley region of WA, including the 100% owned Cummins Range Rare Earth Project.
