1. Most Discussed
  2. Gainers & Losers
GVM 0.0¢

capital reduction and in specie distribution of na

  1. Interesting announcement. I own a truckload of these. Any comments welcome on what effect this announcement may have. So far the market has taken little interest.

    Share price over the last two weeks has been in consolidation mode around the 3c area with support at 2.8c following a solid move from 2.8 to 3.6. Some large sells have been appearing around 2.9 and 3c but have been snapped up quickly as they appear.


    HOMEX - Perth


    The Board of Golden Valley Mines Limited ("Golden Valley") has
    resolved to implement an equal reduction of capital by way of an in
    specie distribution of all of the shares it currently holds in
    Navigator Resources Limited ("Navigator") to its shareholders,
    subject to obtaining appropriate regulatory and shareholder approvals
    for the transaction.

    The Record Date for determining Golden Valley shareholders'
    entitlement to Navigator shares is yet to be decided but will be
    announced in due course. The in specie distribution to Golden Valley
    shareholders will be on a pro-rata basis, with shareholders likely to
    receive approximately 1 Navigator share for every 15 Golden Valley
    shares held..

    Navigator is currently a wholly owned subsidiary of Golden Valley,
    with 21,000,000 fully paid ordinary shares on issue. Navigator is
    expected to consolidate its capital to 14,313,434 fully paid ordinary
    shares, prior to Golden Valley conducting the in specie distribution
    of those Navigator shares.


    Immediately following and subject to the in specie distribution of
    Navigator shares to Golden Valley shareholders, Golden Valley will
    also release Navigator from a debt of $500,000 in consideration for
    the issue of 3,333,333 Navigator shares to Golden Valley (ie deemed
    issue price of $0.15 per Navigator share).


    Following appropriate regulatory and shareholder approvals, Mr Tom
    Sanders, the Managing Director of Navigator, will be issued with
    500,000 Navigator "bonus" shares for no issue price, conditional upon
    the successful admission of Navigator to the Australian Stock
    Exchange ("ASX"). Furthermore, it is proposed that Mr Sanders will be
    issued with 2,000,000 "bonus" options exercisable at 20 cents each on
    or before 30 June 2006. The issue of the "bonus" options is also
    conditional upon the successful admission of Navigator to ASX.


    It is proposed that, following the in specie distribution of
    Navigator shares to Golden Valley shareholders referred to above,
    Navigator will make an initial public offering of its shares to raise
    approximately $3,000,000 for the purposes of satisfying certain of
    the conditions for admission of the company to the Official List of
    the ASX.

    A prospectus for the offer of Navigator shares will be made available
    by Navigator when the shares are offered. Anyone who wishes to
    acquire shares in Navigator will need to complete an application form
    that will accompany that prospectus. Golden Valley shareholders will
    be given a priority right to participate in the initial public
    offering of Navigator shares.

    As part the overall process, a new Board of Directors will be
    appointed to Navigator, all of which will be independent of Golden


    Navigator will also shortly be seeking to raise approximately
    $150,000 in seed capital from certain persons which Navigator is
    entitled to issue securities to, without a prospectus, for the
    purposes of funding the process of the initial public offering.


    A Notice of Meeting and Explanatory Memorandum seeking shareholder
    approval for certain of the transactions referred to above will be
    dispatched by Golden Valley shortly.

    B Sergeant

Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.


Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.