Navarre Minerals Limited Quarterly Report: Financial Struggles and Voluntary Administration
NML (NML) Share Update July 2024 Wednesday 10th
Navarre Minerals Limited Enters Voluntary Administration Amid Financial Struggles
Navarre Minerals Limited (ASX: NML) has released its quarterly report, detailing significant financial challenges and the company's entry into voluntary administration.
Instant Summary:
- Navarre Minerals Limited enters voluntary administration.
- Appointment of Receivers & Managers for Navarre Minerals Queensland Pty Ltd.
- No activities on tenements under Navarre's control during the quarter.
- Creditors resolve to wind up NMQ and enter a Deed of Company Arrangement (DOCA).
- PAC Partners loan to cover ASX fees and avoid delisting.
- Cash balance at the end of the quarter: $119k.
Voluntary Administration
During the quarter ending 30 September 2023, Navarre Minerals Limited (NML) continued under external administration. Joint and several administrators, Duncan Clubb, Andrew Fielding, and Andrew Sallway, were appointed for all companies in the Navarre Group pursuant to section 436A of the Corporations Act 2001 (Cth).
As of 21 June 2023, Navarre Minerals Limited no longer controlled Navarre Minerals Queensland Pty Ltd (NMQ) and the Mt Carlton mine operations due to the appointment of Receivers & Managers.
Projects and Exploration
There were no activities on the tenements under the control of Navarre Minerals Limited during the quarter. The company focused on managing its financial difficulties and navigating the administration process.
Corporate Developments
On 17 July 2023, the Report to Creditors by the Voluntary Administrators was published. It recommended that creditors resolve to wind up NMQ and adjourn the second meeting of creditors for the Navarre Group, excluding NMQ, for up to 45 business days, pending a Deed of Company Arrangement (DOCA) proposal.
On 21 August 2023, PAC Partners Securities Limited loaned the Voluntary Administrator $44,618.10 to enable Navarre Minerals Limited to pay annual ASX fees and avoid delisting. The loan terms included repayment at the next capital raise, a 12-month term, 0% coupon, and a 15% fee.
On 25 August 2023, at the Second Meeting of Creditors of NMQ, attendees voted to enter liquidation. On 26 September 2023, at the Second Meeting of Creditors of the Navarre Group excluding NMQ, creditors resolved to enter a DOCA put forward by the Directors of the Navarre Group of Companies, working with PAC Partners Securities. The selected DOCA proposal included the acquisition of the parent company Navarre Minerals Limited for $125,000 and the sale of remaining mineral tenements over the next three months.
Financial Summary
As of 30 September 2023, Navarre Minerals Limited had cash balances of $119k. Major cash flow movements for the quarter included:
- Employee, administration, and corporate costs: ($123k)
- Capitalised exploration and evaluation costs: ($26k)
- Funds received from NMQ and the Mt Carlton operations: $84k
- Proceeds from borrowings: $45k
The entry into voluntary administration and the financial difficulties faced by Navarre Minerals Limited are likely to have a negative impact on the company's stock price. The liquidation of NMQ and the sale of mineral tenements may further affect investor confidence. The loan from PAC Partners to cover ASX fees highlights the company's struggle to maintain its listing status.
Investor Reaction:
Investor reactions have been mixed, with some expressing concern over the company's financial stability and the potential impact on their investments. Analysts have noted the significant challenges Navarre Minerals Limited faces in navigating its current financial situation.
Conclusion:
Investors should closely monitor the developments surrounding Navarre Minerals Limited's voluntary administration and the outcomes of the DOCA. The company's ability to stabilize its financial situation and execute its recovery plan will be crucial in maintaining investor confidence.