PERTH (miningweekly.com) – ASX-listed junior Navaho Gold has moved to acquire privately held Argentine firm Excarb, which owns the rights over several prospective coal projects in Argentina.
Under the terms of the agreement, Navaho would purchase Excarb through the issue of more than 17.8-million shares, subject to shareholder approval.
The company would also issue a further 140-million shares, over five tranches, on the completion of certain milestones, including the definition of a 60-million-tonne Joint Ore Reserve Committee-compliant resource and coal quality testing to support the resource definition, a positive feasibility study, securing of offtake agreements and the start of production.
Excarb holds the rights to purchase several prospective coal projects, including both thermal and coking coal projects, with the most prominent being the Marayes project, in the San Juan province.
Navaho told shareholders on Friday that the company intended to conduct detailed mapping, sampling, drilling and coal quality testing at the prospective sites, as well as prefeasibility studies over the next two years.