Navarre Minerals Quarterly Report - March 2024
NML (NML) Share Update July 2024 Wednesday 10th
Navarre Minerals Reports Quarterly Activities and Financials Amid Voluntary Administration
Navarre Minerals Limited (ASX: NML) has released its quarterly report for the period ending March 31, 2024, detailing ongoing activities, financial performance, and updates on its projects.
Instant Summary:
- Navarre Minerals remains under External Administration as per the Deed of Company Arrangement (DOCA).
- No activities were conducted on Navarre's 100% owned tenements during the quarter.
- Navarre committed to its 49% interest in the Tandarra Gold Project by paying approximately $373,000.
- Successful bid to purchase all mineral tenements for $400,000, totaling $525,000 to effectuate the DOCA.
- Sale of 7,600,000 shares in Resource Base Ltd for $319,428.
- Cash balance at the end of the quarter stood at $92,000.
Voluntary Administration
During the quarter, Navarre Minerals Limited continued under External Administration in accordance with the Deed of Company Arrangement (DOCA) executed on October 18, 2023. The company's activities and financial decisions were guided by this arrangement.
Projects and Exploration
Navarre's 100% owned tenements saw no activities during the quarter. However, at the Tandarra Gold Project, where Navarre holds a 49% interest, project operator Catalyst Metals Limited completed a diamond drilling program at the Lawry prospect and an air core drilling program at Uptons Road prospect. Assays for the diamond drilling are pending.
On June 12, 2024, the board committed Navarre to its 49% interest in the Tandarra Gold Project by paying its share of outstanding called sums under the joint venture agreement, amounting to approximately $373,000.
Corporate Activities
On January 16, 2024, Navarre's increased bid to purchase all mineral tenements for $400,000 cash was successful, bringing the total amount to effectuate the DOCA to $525,000. Additionally, on January 17, 2024, Navarre sold 7,600,000 shares in Resource Base Ltd for $319,428. This transaction was mandated to be executed on third-party terms by PAC Partners Securities Pty Ltd, where Non-Executive Director James Gurry was employed. Mr. Gurry did not receive any direct or indirect benefit from this transaction.
Control of the Navarre Group reverted to the Directors on January 19, 2024, under the terms of the DOCA. On March 12, 2024, the Directors and one previous director agreed to compromise their claims against the company from $753,000 to $70,000 owed to Mr. Geoff McDermott, which could be settled in cash or through the issuance of shares in the future.
Financial Overview
At the end of the quarter, Navarre Minerals Limited had cash balances of $92,000. Major cash flow movements included employee, administration, and corporate costs of $58,000, capitalized exploration and evaluation costs of $45,000, net costs related to voluntary administration of $211,000, and proceeds from the sale of investments amounting to $319,000.
Payments to Related Parties
During the March 2024 quarter, no salaries or fees (including superannuation) were paid to related parties and their associates.
The quarterly report highlights the financial and operational challenges Navarre Minerals is facing as it navigates through voluntary administration. The commitment to the Tandarra Gold Project and successful bid for mineral tenements indicate a strategic focus on maintaining and potentially expanding their asset base. However, the limited cash reserves and ongoing financial obligations could impact investor confidence and stock performance.
Investor Reaction:
Investors and analysts have shown mixed reactions. Some are optimistic about the company's strategic moves to secure its assets, while others are concerned about the financial strain and limited cash reserves. The market will be closely watching Navarre's next steps, especially regarding the recapitalization plan under the DOCA.
Conclusion:
Investors should keep a close eye on Navarre Minerals' upcoming financial decisions and project developments. The company's ability to navigate through its current financial challenges and successfully execute its strategic plans will be crucial for future growth and stability.