Navigator restructures raising again
Navigator Resources’ falling share price has forced it to again restructure its planned rights issue to raise up to $32.6 million.
Navigator announced today it had amended the rights issue it originally restructured last month, and will now offer a 7 for 2 renounceable rights issue at 2 cents per share.
Subscribers will also receive one listed option for every two shares subscribed for, exercisable at 4 cents on or before July 31, 2014.
Patersons Securities will underwrite the minimum $20 million raising amount, Navigator said.
Navigator announcedon June 27 it would seek to raise funds through a five for three renounceable rights issue priced at 4 cents per share, instead of the original one for one rights issue priced at 6.8 cents announced on June 20.
The closing date for acceptances of the new offer is August 9.
Navigator’s stock has plunged over the last month, falling from 12.5 cents on June 7, to 2.8 cents at 10:18AM (WST) today.
“The trading of Navigator securities by shareholders unfortunately have again resulted in the share price falling below the issue price,” Navigator said in a statement.
“Since this time, Navigator and Patersons have been working closely to reframe the issue to provide a level of certainty for the company, its shareholders and the underwriter.”
Navigator is seeking to raise the funds to fund the development of the Cockburn pit at its Bronzewing gold project, and to repay its debt facility with RMB.
The company had previously announced RMB granted it an extension to its current debt facility of $11.1 million to August 2.
Navigator said RMB had agreed to amend that extension to August 18, in line with the restructured rights issue.
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