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Navigator administors sells Leonora

8th April 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Kin Mining on Tuesday reported that it had signed a binding term sheet to acquire the Leonora gold project from embattled ASX-listed Navigator Resources.

In April last year, Navigator appointed an administrator, which in June placed the flagship Bronzewing project on care and maintenance. The sale of the Bronzewing project was currently being negotiated with fellow-listed Metaliko Resources.

Under the terms of the agreement, Kin would acquire all the issued securities in Navigator subsidiary Navigator Mining for A$2.7-million in cash.

The transaction was conditional upon a due diligence, shareholder approval, the execution of a formal share purchase agreement, and Kin completing a A$5-million fund raising.

The Leonora project includes the Metrondale, Cardinia, Raeside and Gambier Lass project areas, and was estimated to host a mineral resource of about 745 000 oz of gold.

The project is located close to Kin’s existing projects, and the miner said on Tuesday that following the transaction, the company would immediately assess the project areas in an effort to improve the status of the Joint Ore Reserves Committee-compliant resource, with the intention of establishing an economical mining operation.

Edited by Creamer Media Reporter

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