SPP on offerNavarre Minerals (Navarre) is offering its shareholders the opportunity to participate in a Share Purchase Plan (SPP). Funds raised through the SPP will be used for resource and reserve delineation, to extend the life of the Mt Carlton mine. The following image shows the region of the Mt Carlton mine:Source: Navarre MineralsNavarre Minerals is seeking to raise circa A$5.0 million through its SPP. To be eligible to participate in the SPP, Members had to own Navarre shares on 31 May 2022. We are pleased that Navarre has provided an opportunity for its shareholders to participate in the development of its Mt Carlton mine, as it recently successfully raised capital through a share placement. Exploration and drilling at Mt Calton and district will now go well into 2023.Matters pertaining to the SPP, including other eligibility criteria are contained in the SPP Booklet, that was forwarded to Members eligible to participate in the SPP on 8 June 2022. The SPP issue price is A6.6 cents per SPP share and at the time of writing, Navarre’s share price was trading, on the Australian Stock Exchange (ASX), at A4.7 cents.Under the SPP, eligible shareholders may purchase a minimum of A$1,000 to a maximum of A$30,000 in new SPP shares or at pre-determined values within this range. The nominated levels of participation are shown in the following table:Source: Navarre MineralsEligible shareholders may select one pre-determined level of participation and may only apply for an aggregated total of A$30,000 inclusive of the number of portfolios. Management of Navarre reserves the right to increase or scale back SPP applications in the event the A$5.0 million being sought is exceeded.The SPP is currently open for eligible shareholders to lodge applications and will close on 24 June 2022. SPP shares will be issued on 30 June 2022 and updated holding statements will be issued on 8 July 2022. Trading of SPP shares will commence on the ASX on 1 July 2022.We recommend Members participate in the SPP, in proportion to the value of Navarre in their portfolio. Our recommendation should only be acted on, if Navarre’s share price, by the time a valid application must be lodged, is at or above the A6.6 cents SPP offer price. Members should action our recommendation, after noting our caveat, at a time closer to the close date of 24 June 2022.The SPP follows on the heels of Navarre successfully raising A$4.0 million through the placement of circa 68.2 share at an issue price of A6.6 cents per share. Settlement of these shares occurred on 3 June 2022. These funds will also be used to accelerate the advancement of the Mt Carlton mine.The Mt Carlton resource stands at 9.1 million tonnes of ore graded at 0.87 of a gram per tonne gold for contained gold of 253,000 ounces, while the ore reserve stands at 7.4 million tonnes of ore graded at 0.64g/t gold for contained gold of 154,000 ounces of gold. We have high expectations that these numbers will be upgraded, given the success Navarre has had at Mt Carlton United and Telstra Hill, following a well worthwhile circa A$5.6 million exploration spend.We have reported on the success Navarre is having at its Mt Carlton United project (bottom left in the first image) and the following image shows a schematic of the Mt Carlton United mineral envelope and some results coming out of the project (Au – gold, Ag – silver):Source: Navarre MineralsThe peak assay read from Mt Carlton was two metres graded at 22.9g/t gold, 402.2g/t silver and 0.2% copper from 54 metres, with this assay accompanied by several mates of a similar ilk including those highlighted in the above image and include (i) MCURC-154 of seven metres graded at 14.6g/t gold, 461.6g/t silver and 0.1% copper from 29 metres, (ii) MCUR-122 of two metres graded at 11.3g/t gold, 1,327.5g/t silver and 0.3% copper from 74 metres, (iii) MCURC-121 of four metres graded at 18.7g/t gold, 162.4g/t silver and 0.1% copper from 67 metres. These as we reported at the time of release are excellent results and will certainly in our view see a new resource in the Mt Carlton precinct.The acquisition of Mt Carlton as a producing mine has been a game changer of Navarre and certainly the gold-silver-copper discoveries made since. Navarre also has its first class gold projects in the Stall Corridor project, St Arnaud and Jubilee projects in Victoria. While Crush Creek, some 30 kilometres, as the crow flies from Mt Carlton, has the potential to develop into a major project.As of 31 March 2022, Navarre had a cash holding of A$20.2 million, which is more than sufficient to fund all its current initiatives. This figure has now been supplemented by a A$4.5 million placement and a A$5.0 SPP offer. We have no concerns over liquidity.We are very comfortable with Navarre Minerals raising a significant amount of capital to accelerate the exploration and development of its Mt Carlton mine, especially given the results seen to date from the region.Consequently, we continue to recommend Navarre Minerals as a buy for Members with no exposure.
Expand
(20min delay)