Why Navaho Gold is Moving to Acquire Argentine Coal Project

By Admin
With the right location and right price, the acquisition of Excarb is an offer Navaho Gold cant refuseNavaho Gold is inching closer to acquiring Argenti...

With the right location and right price, the acquisition of Excarb is an offer Navaho Gold can’t refuse

Navaho Gold is inching closer to acquiring Argentine firm Excarb, which owns the rights to several lucrative coal projects in Argentina.

The purchase would be a win-win situation for the Australian-based company as it would receive the rights to numerous coal projects in Argentina, including thermal and coking coal projects. The company would also gain access to developing markets for local Argentinean power generation, steel making, mineral processing, and export application, not to mention putting Navaho Gold in close proximity to existing rail networks with links to industrial areas and ports.

The coal projects have been identified for significant tonnages of thermal and coking coal in San Juan and Rio Negro provinces

Another motive for the deal is the price. According to sources, Navaho would purchase Excarb through the issue of more than 17.8-millon shares (with shareholder approval), allowing the company to retain its existing cash reverses.  The transaction would also include an additional 140-million shares, over five tranches, on the completion of certain milestones.

The company informed shareholders it would conduct its own studies before the acquisition is made, including,  mapping, sampling, drilling, and ore quality testing as well as prefeasibility studies over the next two years.  

The depths and dips of the coals seams are ideal as it could be mined by open-cut methods, leading to lower-than-expected operating costs. This makes sense for any mining company but especially for Navaho Gold.

Incorporated in April 1995, Navaho Gold is partially-owned subsidiary of ASX listed DGR Global (DGR) and is primarily focused on the discovery of world-class gold deposits in New Mexico and Nevada, USA.

The acquisition of Excarb is an offer Navaho Gold can’t refuse. With no money out of pocket, low operating costs, potential for high coal reserves, and access to major markets, Navaho Gold is putting itself in the right position to expand.

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