- Navarre Minerals (NML) is undertaking a $9.5 million equity raising, consisting of a $4.5 million placement and a $5 million share purchase plan (SPP)
- The company plans to use the funds to accelerate exploration at its Mt Carlton United deposit in QLD following recent positive drilling results
- Navarre expects to issue around 68.2 million new shares at a price of 6.6 cents each
- Following completion of the placement, Navarre will offer existing shareholders to participate in its non-underwritten SPP to raise up to an extra $5 million
- NML shares are down 15.2 per cent, trading at 6.7 cents as of 1:40 pm AEST
Navarre Minerals (NML) is undertaking a $9.5 million equity raising comprising of a $4.5 million placement and an additional $5 million non-underwritten share purchase plan (SPP).
The company plans to use the funds to accelerate exploration at its Mt Carlton United deposit in Queensland following recent drilling results which confirmed potential for additional resource and resource growth.
Under the terms of the placement, the company estimates around 68.2 million new shares will be issued at an issue price of 6.6 cents per share, representing a 16.5 per cent discount to the last closing price.
The new shares represent around 4.9 per cent of the company’s existing issued share capital.
Following settlement of the placement, Navarre expects an increase in its free float and liquidity with each of the two company’s significant corporate shareholders electing not to participate in the placement.
Managing Director Ian Holland said since taking ownership of the Mt Carlton operation, the company has materially advanced its understanding of the project and its prospectivity.
“With momentum building at Mt Carlton, we believe timing is right to step up exploration activity as we look to expand the growing resource base and convert more resources into reserves into our state-of-the-art processing facility.”
Following completion of the placement, Navarre will offer existing shareholders to participate in its non-underwritten SPP to raise up to $5 million.
Eligible shareholders will have the opportunity to apply for up to $30,000 new shares without brokerage and other transaction costs at the same issue price as the placement.
The company may raise more or less than its intended amount because it is not underwritten.
The tentative closing date of the SPP is June 24, with the results expected on June 28 and issue to begin June 30.
Ord Minnett is the sole lead manager to the placement.
Working capital of $200,000 and a current cash balance of $6.1 million is said to provide the company with an aggregate working capital buffer of $6.3 million.
NML shares were down 15.2 per cent, trading at 6.7 cents as of 1:40 pm AEST.