News Bulletin

Navigator looks to rare earth float

Friday, 22 Oct 2010

written by Tania Winter at MiningNewsPremium.net (view original story at  http://www.miningnewspremium.net/StoryView.asp?StoryID=1541655)


Gold producer Navigator Resources plans to undertake an in-specie distribution of shares to its shareholders in a new rare earth oxide-focused company to be listed on the ASX early next year. All Navigator shareholders will receive a capital return in the form of shares in the new Rare Earths Company (RECo), and will receive a pro-rata entitlements offer to subscribe for additional new shares in RECo. BGF Equities have been mandated as lead manager to the in-specie distribution, capital raising and future listing.

Navigator will retain a 10% shareholding in RECo following the listing, with the majority of the balance to be offered to Navigator shareholders. It is anticipated that RECo will undertake a compliance listing on the Australian Securities Exchange early next year with initial cash reserves of more than $A10 million. Navigator expects to appoint an experienced board and management to the company prior to its listing. The initial focus of the new group will be the Cummins Range rare earth oxide deposit, located in the Kimberley region of Western Australia.

RECo will have the exclusive right to earn a 50% interest in the project after spending $10 million. The property contains an inferred resource of 4.17 million tonnes at 1.72% rare earth oxide (REO), 11% phosphate and 187 parts per million uranium dioxide, including a higher grade zone of 1.09Mt at 2.79% REO. Last month, Navigator announced it had appointed PCF Capital to determine the marketability of its Cummins Range asset with a view to potential joint venture, sale, part-sale or future listing. PCF did receive a number of high-quality, but non-binding offers to participate in the project, some valuing the asset at up to $20 million.

     

      

     

     

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