Yesterday's West Australian
Cobra strikes at Bronzewing
Nick Evans, The West Australian
October 1, 2013, 7:19 am
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The West Australian ©
The historic Bronzewing gold mine could soon have new owners after administrators of failed miner Navigator Resources signed an agreement for the sale to unlisted Cobra Mining.
Cobra has signed a heads of agreement with Navigator administrators Pitcher Partners, and paid a small deposit to ensure its exclusive right to the mine while the company finalises due diligence investigations.
Cobra is believed to have offered $10 million to $15 million for the mothballed Bronzewing, which includes consideration for the estimated $7.3 million in environmental bonds still held as part of the project.
Cobra's directors include: Ian Gilmour, who also runs a Kalgoorlie earthmoving company; Leonora accountant Ross Norrie; KGL Resources chief operating officer Keith Mayes and Crucible Gold director Simon Coxhell, the exploration manager at Navigator at the time of the company's 2003 float. Mr Coxhell left the company several years later, well before Navigator's ill-fated 2009 decision to buy Bronzewing from the ashes of View Resources.
Reward Minerals director Michael Ruane is also understood to have a significant role in Cobra's management team.
Registered in 2011, Cobra signed a deal with Mutiny Gold last year to mine its White Well deposit. Part of a broader strategy to mine a series of smaller deposits, it is understood that plan was put on hold earlier this year as the price of gold tumbled.
Navigator called in administrators in March after giving up its four-year struggle to make Bronzewing pay. At the time of its collapse, Navigator was estimated to owe about $40 million, including $17.5 million to major shareholder Au Mining, $12 million to secured lender Waterton Global Value and about $10 million to trade creditors.
After acquiring the project for $16 million, Navigator tapped investors for about $87 million as it struggled to make money from the one-time flagship mine of Joseph Gutnick's Great Central Mines.
Bronzewing is the first of Navigator's major resources assets to find a buyer in the PCF Capital-run sale process. The company's suite of exploration tenements around Leonora is also believed to have attracted interest.
Cobra Mining could not be contacted for comment yesterday.
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