Navarre gets cash for Mt Carlton buy

NAVARRE Minerals has raised A$40 million to fund the acquisition of Evolution Mining’s Mt Carlton gold mine in Queensland.
Navarre gets cash for Mt Carlton buy Navarre gets cash for Mt Carlton buy Navarre gets cash for Mt Carlton buy Navarre gets cash for Mt Carlton buy Navarre gets cash for Mt Carlton buy

The Mt Carlton mine in Queensland

The 7.5c per share offer was underwritten by lead managers RBC Capital Markets and Canaccord Genuity.

Navarre said the offer was oversubscribed, with a number of new institutional and sophisticated investors joining the register.

Evolution committed to subscribe for up to $20.4 million, but its participation was scaled back to $13.2 million as partial consideration for the acquisition.

The remainder of the $40 million up-front consideration will be paid in cash.

Evolution will emerge with a 12.9% stake in Navarre.

Navarre managing director Ian Holland subscribed for $1 million of new shares, subject to shareholder approval.

"We are delighted with the strong support for the placement, which has secured interest from new and existing investors who are committed to our vision of becoming a significant Australian gold producer," he said.

"We appreciate Evolution's strong equity commitment, reflecting their endorsement of the longer-term potential of the Mt Carlton operations.

"This funding for the transformational Mt Carlton acquisition is a logical step to grow the company, maximise shareholder return and scale our presence in the Australian mining industry."

Mt Carlton is forecast to produce 45,000-50,000 ounces of gold at all-in sustaining costs of $1650-1700/oz this financial year, attributable to Navarre from October 1.

It has reserves of 168,000oz and resources of 387,000oz.

Navarre plans to aggressively explore the 815sq.km tenement package.

Navarre also holds gold exploration ground in Victoria.

Shares in Navarre resumed trading this morning and fell 8.7% to 8.4c.