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- Navarre Minerals (NML) receives binding commitments for its underwritten conditional placement
- On October 5, the company announced it was looking to raise $40 million to buy Evolution Mining’s (EVN) Mt Carlton gold mine
- More than 176.5 million ordinary shares will now be issued to institutional and sophisticated investors at 7.5 cents to raise $36.8 million
- A further $13.2 million worth of shares will be issued to Evolution for the upfront consideration of the transaction
- Shares in Navarre are down 3.26 per cent on the market and are trading at 8.9 cents at 12:36 pm AEDT
Navarre Minerals (NML) has received binding commitments for its underwritten conditional placement.
The company entered a trading halt on October 5 and announced it was looking to raise $40 million to buy Evolution Mining’s (EVN) Mt Carlton gold mine.
A total of 490,134,605 ordinary shares will now be issued to institutional and sophisticated investors at 7.5 cents to raise $36.8 million.
A further 176,565,396 shares, totalling $13.2 million, will be issued to Evolution for the upfront consideration of the transaction.
As previously stated, Navarre will use the money to fund the upfront cash portion of consideration and associated transaction costs.
Shares are expected to settle on November 18 and be allocated to begin trading on the ASX on November 19.
Managing Director Ian Holland commented on the placement.
“We appreciate Evolution’s strong equity commitment, reflecting their endorsement of the longer-term potential of the Mt Carlton Operations,” Mr Holland said.
“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.”
Shares in Navarre are down 3.26 per cent on the market and are trading at 8.9 cents at 12:36 pm AEDT.
