Release from DOCA, Capital Raising and Company Update
Released
Released
Announcement PDF
6 June 2024
Release from DOCA
Navarre returns as Victorian gold explorer
Navarre Minerals Limited (ASX: NML) (Navarre or the Company) provides the following
update.
Successful $1.7m Stage 1 Capital Raise
The first stage to recapitalise the Company has been completed via an approximate
$1.7m convertible debt issuance to sophisticated and professional investors. The key
terms of the convertible debt are detailed in annexure 2 including a 12 month term,
coupon of 15% p.a., general security (excluding director convertible debt) over the
Company and its assets and mandatory conversion into shares at a subsequent
capital raise prior to resumption of ASX trading in NML shares. The Company would
like to thank Harbury Advisors, Canary Capital and all investors for their support in this
capital raise.
James Gurry appointed Managing Director
As disclosed in the 24 April 2024 announcement, given the successful initial capital
raise and release from the DOCA, non-executive Director, Mr James Gurry has been
appointed Managing Director of the Company. Mr Gurry, who has been instrumental
in securing the DOCA agreement, implementing the DOCA requirements and
effecting the relaunch of the Company, said “I look forward to re-establishing Navarre
as a leading Victorian gold explorer, particularly in this current buoyant gold price
environment, and I thank our supporters in this early part of the journey”. The key terms
of Mr Gurry’s appointment are setout in annexure 1.
New Director Appointment – Richard Taylor
This follows the recent appointment of Richard Taylor as Non-executive Director. Mr
Taylor has held senior executive roles in the resource sector for more than 15 years
including CEO and Director of Premier1 Lithium (ASX:PLC), CEO of Terramin Australia
Ltd (ASX:TZN) and held senior roles with Mineral Deposits Ltd, PanAust, MMG Ltd and
Oxiana Ltd specialising in business development, strategy and governance.
The Company continues to speak to other potential new directors as part of its board
succession planning process.
Strong Director support of capital raising
It is noted that in the capital raise, Mr Gurry and Mr Taylor have supported the
Company by investing $100,000 and $25,000 respectively. The issuance of the
convertible notes to these Directors is subject to shareholder approval.
Company released from DOCA
Part of the initial funding has been used to pay the Deed Administrator the agreed
sum of $525,000 and thereby satisfying the key condition to removing the Deed of
Company Arrangement. The DOCA has been effectuated as confirmed by the Deed
Administrator (see annexure 3).
Navarre Mineral Limited
ACN 125 140 105 (ASX:NML)
Level 4, 100 Albert Road, South Melbourne, VIC 3205
P: +61 3 9692 7222 F: +61 3 9956 7355
Page 1 of 6
Use of Funds – ASX compliance
Funds raised will also be used to cover legal, accounting, audit, consultant and other
fees to re-comply with, and seek to resume trading on, the ASX. This is subject to
various approvals including ASX compliance and readmission approval, and
shareholder approval. The Company continues to engage with the ASX on its
pathway to resume trading and at this stage, it does not envisage that re-compliance
with Chapters 1&2 will be required, however this remains subject to the Company
meeting all outstanding compliance requirements (particularly quarterly reports and
FY23 audited financial accounts) and ASX review of the Company’s next stage
recapitalisation plans.
Use of Funds – Exploration project works
Funds raised in this initial capital round will also contribute towards tenement
management, exploration preparation works and/or contributions to the Company’s
non-operating interest in the Tandarra Gold Project JV north of Bendigo.
Future Capital Raising
It is intended the Company will undertake the second step in its recapitalization by
way of a new equity issue immediately prior to the resumption of trading of its shares,
which is subject to various approvals including from the ASX and shareholders. This
capital will be used to fund exploration works on its Victorian Projects and for working
capital. This equity issue is likely to prioritise current shareholders and investors in the
convertible note offer. The Company will in parallel seek shareholder approval to
consolidate its existing issued share capital.
Change of Registered Office and Principal Place of Business
The Company would also like to inform investors that, in accordance with Listing Rule
3.14, effective from the date of this announcement, the Company’s Registered Office
and Principal Place of Business has changed to:
Level 4, 100 Albert Road,
South Melbourne, VIC 3205
The phone number and fax number of the Company will change to +61 3 9692 7222
and +61 2 9956 7355, respectively.
Shareholders should note that the above plans are provisional, may change and are
subject to the Company receiving the necessary approvals to resume trading on
the ASX. Shareholders will be kept informed as these plans progress.
This announcement is approved for release by:
The Directors of Navarre Minerals Limited
For further information please contact:
James.Gurry@navarre.com.au
Harbury Advisors:
• Matthew Lindh +61 3 9663 5355
• Jack Toner
+61 3 9663 5355
mlindh@harbury.com.au
jtoner@harbury.com.au
Navarre Mineral Limited
ACN 125 140 105 (ASX:NML)
Level 4, 100 Albert Road, South Melbourne, VIC 3205
P: +61 3 9692 7222 F: +61 3 9956 7355
Page 2 of 6
Background to Deed of Company Arrangement
The Navarre Group, excluding Navarre Minerals Queensland (in liquidation), entered
a Deed of Company Arrangement (DOCA)1 in late 2023.
The DOCA agreement provided the framework for Navarre to recapitalise and return
to its heritage as a Victorian gold explorer, focusing not only on its flagship Stawell
Corridor Projects (including 304koz gold Resource at Resolution and Adventure
Prospects2) but also the St Arnaud Project, Tandarra JV, Jubilee Project and the
Company’s other tenement related assets (together the “Victorian Projects”).
1 - ASX announcement 14-November-2023
2 - ASX announcement 30-March-2021
Navarre Mineral Limited
ACN 125 140 105 (ASX:NML)
Level 4, 100 Albert Road, South Melbourne, VIC 3205
P: +61 3 9692 7222 F: +61 3 9956 7355
Page 3 of 6
ANNEXURE 1
SUMMARY OF MATERIAL CONTRACT TERMS FOR MR JAMES GURRY
In accordance with Listing Rule 3.16.4, Navarre informs the market of the material terms of the
Agreement with Mr James Gurry for the role of Managing Director.
Key terms of Managing Director appointment:
Commencement date
Term
Total fixed remuneration
Performance incentives
Termination
From release of DOCA
12 months
$225,000 per year invoiced monthly (plus any
statutory superannuation the Consultant will
be required to pay as a result of these
services and/or any applicable GST)
$250,000 performance reward (to be settled
in shares subject to shareholder approval) for
services since mid-2023 in securing DOCA,
carrying out DOCA terms, successfully raising
the initial capital required to effectuate
DOCA. This incentive not to be awarded
before Company has been released from
DOCA but before the capital raising prior to
the resumption of ASX trading in the
Company’s securities.
Other performance incentives are expected
to be put in place for Mr Gurry, new directors
and new employees prior to resumption of
trade in the Company’s securities on the
ASX.
90 days written notice by either party or if
due to change in control: 180 days written
notice by either party.
Navarre Mineral Limited
ACN 125 140 105 (ASX:NML)
Level 4, 100 Albert Road, South Melbourne, VIC 3205
P: +61 3 9692 7222 F: +61 3 9956 7355
Page 4 of 6
ANNEXURE 2 - KEY TERMS OF CONVERTIBLE DEBT
Total amount raised
Conversion Price
Expiry Date
Voting Rights
Transfer
Interest rate
RESTRICTIVE
COVENANTS
Approximately $1.7m
65% of the price payable per ordinary share in a Capital Raise
undertaken for the purposes of the Reinstatement.
For each Share issued to the Noteholder the Company shall issue the
number of Free Attaching Options (if any) per Conversion Share to
the Noteholder, equivalent to the number of Free Attaching Options
issued per Share to participants in the next Capital Raise.
12 months from the date of Convertible Note Deed
The Convertible Notes shall not provide for any voting rights at
shareholder meetings of the Company.
The Noteholder shall not be permitted to transfer Convertible Notes
unless it has obtained the Company’s prior written consent and
agrees to be bound by the terms and conditions of the Deed.
(a)
The Convertible Notes shall accrue interest 15% per annum.
(b)
The Accrued Interest shall be compounded monthly and
converted into Shares at the next capital raising or paid to the
Noteholder at Expiry Date.
Except with the prior written consent of the Noteholder, the
Company must not:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Security interest
create or permit to be created any Security Interest over all
or any part of its assets other than in the ordinary course of
business or the provision or grant of any Security;
incur any new financial indebtedness other than in the
ordinary course of business and excluding the issue of Notes
or the provision or grant of any other Security;
purchase its own shares, reduce its share capital, declare
any dividends, return capital to shareholders or in any other
way restructure its capital other than the purchase of
employee securities subject to vesting restrictions at a price
per security not greater than the original purchase price of
such securities other than a subdivision or consolidation of
the Company’s share capital undertaken solely for the
purposes of, or under or in connection with a Reinstatement;
issue or agree to issue any shares, preference shares, debt
securities, securities capable of conversion into shares, and
any other security or interest issued by the Company other
than contemplated;
sell, assign, transfer or otherwise dispose of, or part with
possession of, or deal with or create an interest in, any of its
material assets, other than in the ordinary course of business;
enter into any agreements that are not at arm's length; and
take any action which constitutes or results in any material
alteration to the nature of the business of the Company.
the Company grants to the Noteholder a Security Interest over all
the Company’s present and after-acquired property to secure
payment of the Monies Payable.
Navarre Mineral Limited
ACN 125 140 105 (ASX:NML)
Level 4, 100 Albert Road, South Melbourne, VIC 3205
P: +61 3 9692 7222 F: +61 3 9956 7355
Page 5 of 6
ANNEXURE 3 – BDO Letter Effectuating DOCA
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret Street
Sydney NSW 2000
Australia
The Board of Directors
Navarre Minerals Limited
3 June 2024
Dear Sirs
NAVARRE MINERALS LIMITED ACN 125 140 105
BLACK RANGE METALS PTY LTD ACN 158 123 687
LODDON GOLD PTY LTD ACN 640 282 882
NORTH CENTRAL GOLD EXPLORATION PTY LTD ACN 640 554 516
TANDARRA GOLD PTY LTD ACN 640 554 534
WESTERN VICTORIA GOLD PTY LTD ACN 641 639 018
(SUBJECT TO POOLED DEED OF COMPANY ARRAGEMENT)
(‘COLLECTIVELY KNOWN AS THE COMPANIES’)
I refer to my appointment as Joint and Several Deed Administrator of the above Companies on 18 October
2023.
I hereby certify that the Pooled Deed of Company Arrangement executed on 18 October 2023 was
effectuated on 3 June 2024.
We have sought to complete all necessary statutory lodgements for the Companies in order to finalise
my appointment.
Should you require any further information please contact Felix Cheung of this office via email
felix.cheung@bdo.com.au.
Yours faithfully
Duncan Clubb
Former Joint and Several Deed Administrator
BDO Business Restructuring Pty Ltd ABN 90 134 036 507 is a member of a national association of independent entities which are all
members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Business Restructuring Pty Ltd and
BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO
network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
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