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E X T R A O R D I N A R Y G E N E R A L M o n d a y , 1 5 N o v e m b e r
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TRANSACTION OVERVIEW
U N E A R T H I N G P R O S P E R I T Y
ASX: NML
• Navarre Minerals Limited ("Navarre"), via its 100% owned subsidiary Navarre Minerals Queensland Pty Ltd ("Navarre Minerals
Queensland"), has agreed to acquire the Mt Carlton Gold Mine ("Mt Carlton") and Crush Creek project ("Crush Creek"), located in | ||
Queensland, Australia (collectively, the "Mt Carlton Operations") from Conquest Mining Pty Limited ("Conquest Mining"), a 100% | ||
owned subsidiary of Evolution Mining Limited ("Evolution") (the "Transaction") | ||
• Acquisition consideration up to A$90 million ("Consideration"), comprised of: | ||
• A$40 million in upfront consideration paid at the time of Completion, of which payment of A$13.2 million will be satisfied by | ||
Navarre issuing ordinary shares to Evolution, calculated by reference to the issue price per share under the Placement | ||
• Up to A$25 million in additional cash consideration payable upon the realisation of the following aggregate recoverable gold | ||
Tra saction | production milestones from Crush Creek: | |
Overview | • A$5 million at 50koz of gold production; | |
only | • A$5 million at 100koz of gold production; and | |
• A$15 million at 175koz of gold production | ||
• Up to A$25 million in additional cash consideration linked to the future gold price, with payments commencing 1 July 2023 and | ||
running for a maximum of 15 years, calculated as follows: | ||
• If the average spot gold price in any quarter exceeds the equivalent of A$2,250/oz, 5% of the average spot gold price multiplied | ||
by the aggregate ounces produced from the Mt Carlton Operations and sold in that quarter | ||
• Completion of the Transaction is expected to occur 5 business days after relevant customary closing conditions (including shareholder | ||
approval) have been satisfied | ||
Transaction | • The Transaction and associated costs to be funded from the fully underwrittenconditional placement of A$36.8 million to new and | |
useF nding | existing institutional and sophisticated investors at an issue price of A$0.075 per fully paid ordinary new share | |
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ASSET OVERVIEW
U N E A R T H I N G P R O S P E R I T Y
ASX: NML
The Mt Carlton Operations comprises an open pit and underground mine, and a 950ktpa processing plant situated on a tenement package of ~815km2
Overview | ||||
Location | ▪ | 150km south of Townsville, Queensland | ||
Tenement Package | ▪ | ~815km2 (3MLs, 1 MDL, 11 EPMs) | ||
Mi | eralisation Type | ▪ | High sulphidation epithermal deposit | Townsville |
Mi | i g Method | ▪ | Open pit and underground (open stoping) | |
Mt Carlton Operations | ||||
Pr | cess Method | ▪ | Conventional crushing, grinding and flotation to produce a | Mackay |
polymetallic concentrate | ||||
onlyPr cess Capacity | Queensland | |||
▪ | 950ktpa | |||
Brisbane | ||||
Workforce | ▪ | 153 Full-time Employees / 120 Contractors (at 30 June 2021) | ||
Acc ss | ▪ via ~40km gravel road (off Bruce Highway) | ||||||||||
Pow r | ▪ Grid power supplied to site mine through 22kV lines with a | ||||||||||
combined capacity of 6MW | |||||||||||
Water | ▪ Burdekin river pipeline (225mm, 36km) 600ML agreement in | ||||||||||
place | |||||||||||
Safety | ▪ Total Reportable Injury Frequency: 7.4 (12mth moving avg. at | ||||||||||
30 June 2021) | |||||||||||
use | |||||||||||
(1) | ▪ 9.53Mt @ 1.26g/t for 387koz Gold | ||||||||||
Mineral Resources | |||||||||||
▪ | 2.69Mt @ 0.49% for 13kt Copper | ||||||||||
Ore Reserves(1) | ▪ 6.43Mt @ 0.81g/t for 168koz Gold | ||||||||||
▪ | 0.62Mt @ 0.74% for 5kt Copper | 3 | |||||||||
(1) Extracted from Evolution's ASX Release dated 17 February 2021 entitled "Annual Mineral Resources and Ore Reserves Statement". See pages 35-37 for further details and also refer to Evolution's ASX Releases dated 12 February 2020 entitled | |||||||||||
nal |
"Annual Mineral Resources and Ore Reserves Statement" and dated 19 June 2020 entitled "Mt Carlton Update"
POTENTIAL FOR MINE LIFE EXTENSION
AT MT CARLTON
U N E A R T H I N G P R O S P E R I T Y
ASX: NML
Residual resources at Mt Carlton economic under current prices, with underground extensions possible through investment in underground drilling. Permitting of satellite deposits advanced
Overview | Mt Carlton (V2 and A39) and Satellites | ||
• Economic extensions identified through technical due | |||
diligence as a greater flexibility with price assumptions | |||
and incremental drilling not captured in last MROR | |||
(December 2020) | |||
• | V2 pit: Link Zone/Western Feeder Zone. | ||
only | Mineralisation continues to extend beyond existing | ||
planned extraction | |||
• | V2 Underground. Mining ongoing, extents remain | ||
use | untested | ||
A39 Underground | |||
• | |||
• | Mt Carlton United open pit. Ore body remains open at | ||
depth and along strike |
•
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CRUSH CREEK LOCATION AND
PROJECT AREA OVERVIEW
Crush Creek is located ~30km southeast of Mt Carlton in Queensland
U N E A R T H I N G P R O S P E R I T Y
ASX: NML
Location of Crush Creek in Relation to Mt Carlton | Crush Creek Project Area Showing Regional Targets |
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Navarre Minerals Limited published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 02:49:04 UTC.