Navarre extends relationships with Glencore and Evolution

JUNIOR gold producer Navarre Minerals has signed a new offtake contract and US$7 million finance facility with Glencore over the Mt Carlton operation in Queensland.
Navarre extends relationships with Glencore and Evolution Navarre extends relationships with Glencore and Evolution Navarre extends relationships with Glencore and Evolution Navarre extends relationships with Glencore and Evolution Navarre extends relationships with Glencore and Evolution

Navarre's Mt Carlton operation

Staff reporter

Delivery of Mt Carlton gold-silver-copper concentrates under the new offtake agreement will begin immediately and continue for the remainder of the financial year.

The finance facility has a maturity date of June 2023.

Drawdown of funds under the facility will be used to provide additional working capital to support the development of ore sources for the mine plan and Navarre's ongoing exploration program across the tenements adjacent to the Mt Carlton operation.

Navarre has also extended an existing agreement with Evolution Mining on the provision of environmental bonding surety related to Mt Carlton.

The agreement now extends to 2025 at which time the bonding for the operation will be fully cash-backed by contributions made by Navarre.

"Navarre is pleased to have executed these key commercial agreements with Glencore and Evolution Mining," Navarre managing director Ian Holland said.

"The Glencore offtake contract provides very competitive terms and flexibility for our concentrate sales while the associated finance facility provides additional working capital to support the development of ore sources for our mine plan and our aggressive exploration programs."

Mt Carlton produced 45,800 ounces of gold in FY22 and 5100oz of gold, 73,100oz of silver and 214 tonnes of copper in the September 2022 quarter.

Navarre had A$4.8 million cash at the end of September.

Shares in Navarre were up 2.4% to 4.2c, valuing the company at just under $62 million.