Navarre Minerals to buy Townsville gold mine Mt Carlton

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Stawell-based mining outfit Navarre Minerals has agreed to acquire Evolution Mining’s Mt Carlton gold operation in Queensland in a deal worth up to $90 million. Navarre Minerals will pay $40 million up-front for the operation, comprising up to $20.4 million worth of Navarre shares. The deal includes the nearby Crush Creek exploration project, which Evolution acquired last year for $11.5 million. Up to $25 million will be payable to Evolution in stages when production milestones of 50,000-175,000 ounces are reached at Crush Creek. Navarre has launched a conditional placement to raise up to $40 million, underwritten by joint lead managers RBC Capital Markets and Canaccord Genuity. LOCAL NEWS: Folkes returns to the teal, black and white The company will issue up to 533 million, or about 76 per cent of its existing share capital, at 7.5 cents per share, an 18.5 per cent discount to Tuesday’s closing price. Navarre managing director Ian Holland has committed to subscribe for $1 million of new shares, subject to shareholder approval. Mr Holland described the transaction as “truly transformational”. “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,” he said. READ MORE: Award chance for Stawell’s mental health carers at Tandem Awards “Under the transaction, Navarre will inherit a well-established operation and a highly experienced site operating team and workforce which we are confident will fit in with Navarre’s own culture and focus on potential for further discovery and resource addition. “We also welcome Evolution’s strong support for the Navarre team and longer-term potential of the Mt Carlton operations, as evidenced by their agreement to subscribe for Navarre shares in connection with the transaction. “Despite Navarre’s size, the company aspires to reflect the best values of larger companies, such as Evolution. To this end, Navarre will seek to deliver to the high watermark of asset stewardship, ESG and community relations set by Evolution at Mt Carlton.” Holland was the former vice president, Australian operations for Kirkland Lake and had responsibility for the company’s world-class Fosterville mine and joined Navarre about a year ago. LOCAL NEWS: Stawell Yacht Club holds program to teach basics of sailing in November Former MD Geoff McDermott remains on the board as technical director, while well-regarded former RBC analyst Paul Hissey recently joined as chief financial officer. Stawell-based Navarre, which was previously focused on gold exploration in Victoria, said the transaction met its goal to become a producer and use the cash flow to fund exploration. Shares in Evolution were up 1.4 per cent to $3.67, about a two-week high. Navarre shares will remain in a trading halt until the raising is completed. If you can see this message, you are a loyal digital subscriber to The Stawell Times-News, as we made this story available only to subscribers. Thank you very much for your support and for allowing us to continue telling Stawell’s story. We appreciate your support of journalism in our great town.

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Stawell-based mining outfit Navarre Minerals has agreed to acquire Evolution Mining’s Mt Carlton gold operation in Queensland in a deal worth up to $90 million.

Navarre Minerals will pay $40 million up-front for the operation, comprising up to $20.4 million worth of Navarre shares.

The deal includes the nearby Crush Creek exploration project, which Evolution acquired last year for $11.5 million.

Up to $25 million will be payable to Evolution in stages when production milestones of 50,000-175,000 ounces are reached at Crush Creek.

Navarre has launched a conditional placement to raise up to $40 million, underwritten by joint lead managers RBC Capital Markets and Canaccord Genuity.

The company will issue up to 533 million, or about 76 per cent of its existing share capital, at 7.5 cents per share, an 18.5 per cent discount to Tuesday’s closing price.

Navarre managing director Ian Holland has committed to subscribe for $1 million of new shares, subject to shareholder approval.

Mr Holland described the transaction as “truly transformational”.

“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,” he said.

“Under the transaction, Navarre will inherit a well-established operation and a highly experienced site operating team and workforce which we are confident will fit in with Navarre’s own culture and focus on potential for further discovery and resource addition.

“We also welcome Evolution’s strong support for the Navarre team and longer-term potential of the Mt Carlton operations, as evidenced by their agreement to subscribe for Navarre shares in connection with the transaction.

“Despite Navarre’s size, the company aspires to reflect the best values of larger companies, such as Evolution. To this end, Navarre will seek to deliver to the high watermark of asset stewardship, ESG and community relations set by Evolution at Mt Carlton.”

Holland was the former vice president, Australian operations for Kirkland Lake and had responsibility for the company’s world-class Fosterville mine and joined Navarre about a year ago.

Former MD Geoff McDermott remains on the board as technical director, while well-regarded former RBC analyst Paul Hissey recently joined as chief financial officer.

Stawell-based Navarre, which was previously focused on gold exploration in Victoria, said the transaction met its goal to become a producer and use the cash flow to fund exploration.

Shares in Evolution were up 1.4 per cent to $3.67, about a two-week high. Navarre shares will remain in a trading halt until the raising is completed.

If you can see this message, you are a loyal digital subscriber to The Stawell Times-News, as we made this story available only to subscribers. Thank you very much for your support and for allowing us to continue telling Stawell’s story. We appreciate your support of journalism in our great town.

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