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Navarre Minerals (ASX:NML) completes acquisition of Mt Carlton gold mine

ASX News, Mining
ASX:NML      MCAP $28.55M
15 December 2021 09:51 (AEST)

Source: Navarre Minerals

Navarre Minerals (NML) completes the acquisition of the Mt Carlton operations in Queensland.

Mt Carlton is an established gold operation located 150 kilometres south of Townsville in Queensland. The mine has been operating since 2013, producing gold, copper, and silver by-product credits.

Navarre Minerals economic interest in Mt Carlton accrues from October 1, 2021. The operation is expected to deliver significant cash flow throughout the first year.

To increase the mineral stockpile and mine life, Navarre Minerals intends to pursue high-grade, near-mine ore sources.

Navarre Minerals has agreed to pay Evolution Mining, as announced on October 5 2021, $40 million in cash and shares, and deferred cash payments of up to a total of $50 million upon realisation of certain agreed gold production.

Navarre Minerals has funded the transaction through fully underwritten $36.8 million in raised equity.

Navarre Minerals Managing Director, Ian Holland, said the following about the transaction.

“We are excited at both the production and exploration potential at Mt Carlton and look forward to unlocking this value over the coming years for all stakeholders,” he said.

The deal was backed by a fully underwritten $36.8 million equity raise by the company. A $26.8 million in ‘up front’ consideration has been paid in cash, with the remaining $13.2 million being met by the issuance of Navarre shares, giving Evolution a 12.9 per cent stake in Navarre.

Navarre Minerals is a gold producer and mineral explorer, based in Stawell, Victoria.

Navarre Minerals (NML) is at A$0.068 before the market opens.

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