http://www.navarre.com.au

will post more today,i lost time with the flooding,and just getting my act back into gear now.

disclosure, i have escrowed stock in this,and a big learning curve dabble thus have a financial interest in seeing it get up.

still running, have had brief chat, the feedback is that shareholder spread is still being sought.

old trick, but anyone wanting any in the float,if they used multiple legal registrations would be sure of getting all the small allocations,scale backs would be done on the larger bids first to get the shareholder spread.

anyone with fridays fin still lying about could look on page 29 for an upbeat few paragraphs in the ipo watch column.

'plenty of upside in navarre minerals' is the headline.

i will send off for shares at the ipo price,to have free to trade exposure to the base metals drilling at the black ranges project. drill rig owned by shareholder booked to go as soon as the raise gets away.

the tradable opportunity news should be in two or three pulses in the first 6 months. [market willing]

as it says at the end of the fin article ---suits experienced investors only---.


closes on the 4 of february.

another little trick for sharesguru readers.

it is a given that all small applications will be accepted to get shareholder spread.

additionally,if you write

"chairmans list" on the top right hand corner of the application form,this will give priority over general public applications.

i am told that asic/asx cross referrence addresses of seed holders for the shareholder spreads,and escrowed shares do not count....details details.

seeing if i can copy and paste the fin article.

Selling a Victorian base metals float is hard work in a market obsessed with African exploration stocks. But
that has not stopped Navarre Minerals attracting support.
Navarre wants up to $5 million to develop projects in western Victoria – an area not known for base metals
mineralisation, in a state that has had prominent exploration disappointments.
Lihir Gold’s sale of its Ballarat goldmine last year and Bendigo Mining’s problems at its Kangaroo Flat
goldmine in 2007 cast a shadow over Victorian-focused exploration stocks.
No Victorian explorers raised capital through initial public offerings last year. The most recent, Victorian Gold
Mines, now Celamin Holdings, listed in November 2009 after raising $3 million.
Ironically, Celamin shares broke their slump after the company bought a North African phosphate and base
metals explorer in July 2010, rallying from 7.3¢ to 48¢.
Navarre looks tame by comparison. Its projects are not within the famed “golden triangle” region of central
Victoria and there are few obvious features in the float to whet speculator appetites.
Closer inspection shows some attractions. The first is GeoScience Victoria’s presentation this March of
geological survey results across western Victoria and eastern South Australia.
More information on the Delamerian Fold Belt, where Navarre’s Black Ranges copper/zinc/gold projects sit,
could spur exploration and investor interest in the area. Navarre’s other main asset is the Tandarra gold
prospect 40 kilometres north of the Bendigo Goldfield.
Navarre, of course, is bullish about western Victoria mineralisation. But unlike many small exploration floats,
Navarre was not formed to cash in on an emerging exploration theme.
Its key projects were worked on for several years, only to be hidden within companies that were taken over or
had little interest in non-gold projects.
Navarre’s lineage stretches back to MPI Mines, an explorer that used to buy assets previously owned by
Western Mining Corporation. MPI acquired a 50 per cent share in Victoria’s Stawell Gold Mine from WMC in
1992.
Canada’s LionOre Mining took over MPI in 2004 for its nickel assets and divested its Victorian gold operations
into a new company, Leviathan Resources.
Navarre managing director Geoff McDermott was MPI’s and Leviathan Resources’ chief geologist. Nonexecutive
chairman Kevin Wilson was Leviathan’s managing director. Non-executive director John Dorward
was Leviathan’s chief financial officer and company secretary, and worked at MPI.
Perseverance Corporation took over Leviathan in October 2006, becoming Victoria’s biggest gold producer.
Canadian miner Northgate Minerals rescued Perseverance a year later with a takeover.
The Black Ranges and Tandarra prospects were almost lost in these corporate manoeuvres. The Leviathan
team reformed to incorporate Navarre in 2007 and acquire the prospects from Northgate subsidiary Leviathan
Resources. Northgate owns Victoria’s Stawell and Fosterville goldmines.
Navarre gets to explore the projects and Northgate’s subsidiary will exercise an option to buy 10 per cent of
Navarre for no consideration. Having a cornerstone investor with significant Victorian gold operations has
obvious attractions for Navarre, which will share some resources with Northgate.
More important is the projects finally having their own life in a standalone company that is not wedded to gold
and will have enough cash to perhaps settle some “unfinished business”.
The potential is there. McDermott, a structural geologist, has spent much of his professional life working in
Victoria’s gold industry, first for WMC and later at other key Victorian goldmines. McDermott has not run a
listed company before.
Plenty of upside in Navarre Page 1 of 3
http://www.afr.com/p/markets/market_wra ... IRgovsQr... 31/01/2011
Black Ranges exploration began in 1985 when CRA Exploration recorded copper/gold/silver/zinc
mineralisation. Navarre believes Black Ranges has similar rocks to those in eastern Tasmania that host the
Mt Lyell copper mine.
Black Ranges had promising intersections in a limited drilling campaign. However, much more work is needed
to understand the ore body.
Black Ranges and Tandarra are early-stage projects; neither has resources yet complying with the Joint Ore
Reserves Committee (JORC) Code.
Navarre has two other projects and wants to add more.
Navarre raised about $1 million in seed funding to get Black Ranges and Tandarra to a drill-ready stage. The
last seed funding was in November at 10¢ a share. A small group of loyal investors have funded Navarre
since inception.
Drilling should start soon after listing, giving Navarre potential early news flow at Black Ranges and, to a
lesser extent, Tandarra.
The capital structure is tight. Twenty-five million 20¢ shares will be issued, giving 50.1 million outstanding
shares and a market capitalisation of $10 million at the full subscription.
There are 1.5 million options struck at 20¢, and another 650,000 options at 25¢, expiring by December 2014.
Directors have plenty riding on Navarre’s success.
As to valuation, previous owners are thought to have spent about $4 million in past exploration on Black
Ranges and Tandarra. Another $1 million in seed funding, unpaid work by McDermott, and $5 million in cash
after the IPO puts Navarre’s $10 million valuation in some perspective.
But there is no avoiding the fact that exploration floats are as much about market sentiment as asset quality,
at least in the early days as a listed company. Right or wrong, negativity towards small Victorian-focused
exploration stocks is a headwind.
It could also be an opportunity if fewer explorers search Victoria. Rex Minerals chairman Paul Chapman
recently picked up land near Tandarra through his private company, Gold of Ophir. Private explorer
Providence Gold and Minerals has had recent exploration success near Tandarra.
Navarre is quietly putting a minerals jigsaw puzzle together in a largely unexplored area. The question is
whether key information emerges quickly enough after listing to satisfy investors.
Navarre has plenty of upside if early exploration results go its way, but is extremely speculative and suits
experienced investors only.
The Australian Financial Review
Related News
Plenty of upside in Navarre Page 2 of 3

the interesting bit about this is whether the W Vic area is a continuation of the Mt Reid Volcanics, (and then, of course, if mineralisation has occurred, can be identified/ located, and .... proved to be commercial)

as the article says 'high risk"; assume HB is one of "a small group of loyal investors (that) have funded Navarre since inception" (and known to the team)

a couple of lines in the Fin Review about Navarre's possible extending by 2 weeks for the float, as they may be having difficulty meeting ASX listing rules - getting enough shareholders.

Nothing on Navarre website, though.

This is the quandary: go with a low cost float, cutting out the brokers and other ancillaries, the hype and promotion ..... and run the risk of not getting over the line

going into two weeks of overtime.

well over three hundred holders,within reach of 400 if verbal assurances turn into delivered applications.

possible market unrest could see reluctance to tie money up in a float application during high volatility.

because listing regulations don't let new floats spend all the money on drilling in the first year,you need to have enough to drill,and sit on to fund company running costs for year two as well. the extension won't hurt to get closer to the full sub amount rather than the 'get across the line' amount.

the extension usually means limited potential for a stag profit, but the near term drilling should support demand with news flow.
fallback position is to farm out a prospect or two [which is always on the cards] but you can negotiate from a better position when full funded from a float,and supported by drilling results.

friday is the deadline. looking positive for minimum spread and cash.

[chairman has said he will carry it over the line with his own chequebook if he has to, so you like to hear that sort of thing]

staggering to the line usually means no performance until drilling shareprice wise,but that should be near term.

how far the cash can be strung out? should be able to get a few things done, but a pity that the details weren't nailed so navarre could have floated in the pre christmas market..all part of the learning curve.

got the needed min of holders and cash,closed the offer.

sent the info off to the regulator,then sent off more info, now waiting for processing, and the granting of a listing date.

takes as long as it takes.

Well done HB, watchingfor the float with interest.

Having passed the prospectus to a few friends, it was interesting to hear their comments; which were very supportive and interestingly along the lines of
- the seed capital 10c : IPO 20c ratio of x2 was noticed; if it was a St Georges Tce effort, expect x10
- the board and office bearers: seem august and sensible (won't say sober) and know their stuff
- not too flashy, not a marketing exercise
- yes there is risk, but all in all, very different (= interesting)

Good luck, HB and to all holders.