- Navarre Minerals (NML) aims to raise $40 million to buy Evolution Mining’s (EVN) Mt Carlton Gold Mine
- On Tuesday, the company agreed to buy the Queensland project for $90 million, in a deal that will see Mt Carlton become a cornerstone asset for the company
- The placement will see shares issued at 7.5 cents, representing an 18.5 per cent discount to Navarre’s last trading price
- Navarre has entered into a trading halt until it completes the placement,
- Company shares last traded at 9.2 cents per share
Navarre Minerals (NML) is aiming to raise $40 million to buy Evolution Mining’s (EVN) Mt Carlton gold mine.
Mt Carlton is located around 150 kilometres south of Townsville, Queensland, and was originally developed by Evolution and commissioned in 2013. The mine includes open pit and underground.
On Tuesday, the company agreed to buy the Queensland project for $90 million. The deal will see Mt Carlton become a cornerstone asset for Navarre.
The placement will see shares issued at 7.5 cents, representing an 18.5 per cent discount to Navarre’s last trading price.
In the placement, Navaree Managing Director, Ian Holland, has committed to purchase shares worth $1 million, which will need shareholder approval.
Additionally, Evolution has committed to buy up to $20.4 million worth of ordinary shares as partial satisfaction of the upfront transaction consideration.
“We are proud to announce this truly transformational transaction for Navarre and our shareholders,” Mr Holland said.
“Mt Carlton is a proven, high-margin operation and an attractive vehicle for Navarre to transition from gold exploration company to producer – particularly given the Mt Carlton Operations’ successful history of production and its potential for significant mine life extension.”
On this news, Navarre have entered into a trading halt until it completes the placement. Company shares will be paused until Thursday, October 7.
On the market, Navarre last traded at 9.2 cents per share.