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AF LEGAL GROUP LTD — Proxy Solicitation & Information Statement 2009
Jun 23, 2009
64326_rns_2009-06-23_2d85897a-ab35-4ac8-809e-9b41437cbe5c.pdf
Proxy Solicitation & Information Statement
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24 June 2009
The Manager Company Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square SYDNEY NSW 2000
Dear Sir/Madam
NOTICE OF GENERAL MEETING
Please find attached the Extraordinary Notice of General Meeting which will be dispatched to shareholders tomorrow, 25 June 2009.
Yours faithfully
NAVIGATOR RESOURCES LTD
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Ian Macpherson Company Secretary
Unit 1, 34 King’s Park Road WEST PERTH WA 6005 PO Box 276 WEST PERTH WA 6872
Telephone: (08) 9226 5311 Facsimile: (08) 9226 5411 Email: [email protected] Website: www.navigatorresources.com.au
ASX Code: NAV ACN: 063 366 487
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24 June 2009
Dear Shareholder
I am pleased to correspond with you as Navigator Resources Limited’s newly appointed Managing Director.
During the month or so that has elapsed since commencing, I have worked closely with our first class management team and Board of Directors with a clear objective in mind. In addition, I’ve enjoyed meeting and speaking by telephone with a number of Navigator’s shareholders and, in the process, have obtained an understanding of shareholder aspirations.
My clear focus is to move Navigator from an exploration company to a producing company with its own cashflow in the shortest possible, but sensible, timeframe. To this end, I have attempted to familiarise myself as much as possible with Navigator’s existing and proposed mineral assets with the aim of turning potential into value. This process has involved site visits to both the Bronzewing and Leonora Gold Projects.
The management group is running hard on the proposed acquisition of the Bronzewing Gold Project which has the potential to deliver significant gold production in a short time frame. Optimum Capital has been appointed to advise the Company on project debt funding options and it is expected that a lead broker will be appointed shortly to assist on equity considerations. Current market conditions remain quite fluid, and the ultimate project funding mix is expected to be finalised in the coming weeks. Please be assured that in making the proposed transition to producer status, the Company is mindful of obtaining the best overall project funding outcome for shareholders.
Steps towards unlocking value from our Leonora Gold Project are in progress, but outcomes are not yet sufficiently well developed or certain to warrant further disclosure. Management is aware that considerable shareholder funds have been invested in the establishment of a significant resource base at Leonora, but that to date shareholders have seen little direct return on that investment.
Finally, we are assessing the level of value the Cummins Range rare earth project represents to Navigator. Following internal data consolidation, the Company intends engaging a specialist external resource to advise on a range of strategic options.
The attached Notice of Extraordinary General Meeting contains resolutions that are aimed at progressing the Bronzewing acquisition, moving towards gold production, and ensuring that the Board mix and levels of incentive are competitive. Your support of these resolutions, aimed at achieving our production objectives and enhancing the value of your investment, is requested.
Thank you and regards
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DAVID HATCH Managing Director
Unit 1, 34 King’s Park Road WEST PERTH WA 6005 PO Box 276 WEST PERTH WA 6872
Telephone: (08) 9226 5311 Facsimile: (08) 9226 5411 Email: [email protected] Website: www.navigatorresources.com.au
ASX Code: NAV ACN: 063 366 487
ABN:�82�063�366�487�
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NOTICE�OF�EXTRAORDINARY�GENERAL�MEETING��
EXPLANATORY�STATEMENT��
PROXY�FORM�
Date:� Thursday,�30�July�2009�
Time:� 2.00pm�(WST)�
Place:� The�Celtic�Club� 48�Ord�Street� West�Perth,�Western�Australia�6005�
THIS�IS�AN�IMPORTANT�DOCUMENT.��PLEASE�READ�IT�CAREFULLY.��
If�Shareholders�are�in�doubt�as�to�how�they�should�vote,�they�should� seek�advice�from�their�professional�advisers�prior�to�voting.
CONTENTS�PAGE�
| CONTENTSPAGE | |
|---|---|
| NoticeofExtraordinaryGeneralMeeting | 3 |
| ExplanatoryStatement | 6 |
| Glossary | 12 |
| AnnexureA–TermsandConditionsofPlacementOptions | 13 |
| AnnexureB–TermsandConditionsofDirectorOptions | 14 |
| AnnexureC–ValuationofDirectorOptions | 16 |
| ProxyForm |
TIME�AND�PLACE�OF�MEETING�AND�HOW�TO�VOTE�
VENUE�
The�Extraordinary�General�Meeting�will�be�held�at�2.00pm�(WST)�on�Thursday,�30�July�2009�at�The�Celtic� Club,�48�Ord�Street,�West�Perth,�Western�Australia�6005.�
YOUR�VOTE�IS�IMPORTANT�
The�business�of�the�Extraordinary�General�Meeting�affects�your�shareholding�and�your�vote�is�important.�
HOW�TO�VOTE�
You�may�vote�by�attending�the�meeting�in�person,�by�proxy�or�by�authorised�representative.�
VOTING�IN�PERSON�
To�vote�in�person,�attend�the�Extraordinary�General�Meeting�on�the�date�and�at�the�place�set�out�above.�
VOTING�BY�PROXY�
To�vote�by�proxy,�please�complete�and�sign�the�enclosed�Proxy�Form�and�return�by:�
-
(a) hand�delivery�to�the�Company’s�registered�office�at�Unit�1,�34�King’s�Park�Road,�West�Perth,� Western�Australia�6005;�or�
-
(b) post�to�Navigator�Resources�Limited,�PO�Box�276,�West�Perth�WA�6872;�or�
-
(c) facsimile�to�the�Company�on�facsimile�number�(+61�8)�9226�5411;�or�
-
(d) email�to�the�Company�at�[email protected],�
so�that�it�is�received�not�later�than�at�2.00pm�(WST)�on�Tuesday,�28�July�2009.�
Proxy�Forms�received�later�than�this�time�will�be�invalid.�
2�
NOTICE�OF�EXTRAORDINARY�GENERAL�MEETING
Notice�is�hereby�given�that�an�Extraordinary�General�Meeting�of�Shareholders�will�be�held�at�2.00pm� (WST)�on�Thursday,�30�July�2009�at�The�Celtic�Club,�48�Ord�Street,�West�Perth,�Western�Australia�6005.�
The�Explanatory�Statement�to�this�Notice�of�Meeting�provides�additional�information�on�matters�to�be� considered�at�the�Extraordinary�General�Meeting.��The�Explanatory�Statement�and�the�Proxy�Form�are� part�of�this�Notice�of�Meeting.�
The�Directors�have�determined�pursuant�to�Regulation�7.11.37�of�the�Corporations�Regulations�2001� (Cth)�that�the�persons�eligible�to�vote�at�the�Extraordinary�General�Meeting�are�those�who�are� registered�Shareholders�of�the�Company�at�5.00pm�(WST)�on�Tuesday,�28�July�2009.�
Terms�and�abbreviations�used�in�this�Notice�of�Meeting�and�Explanatory�Statement�are�defined�in�the� Glossary.�
AGENDA
1.� RESOLUTION�1�–�RATIFICATION�OF�PRIOR�ISSUE�OF�SHARES�AND�OPTIONS�
To�consider�and,�if�thought�fit,�to�pass�the�following�resolution�as�an� ordinary�resolution :�
"That,�for�the�purpose�of�ASX�Listing�Rule�7.4�and�for�all�other�purposes,�that�the�previous�issue� of�7,350,000�Shares�in�the�capital�of�the�Company�and�2,675,000�Options�on�the�terms�and� conditions�set�out�in�the�Explanatory�Memorandum�accompanying�this�Notice�be�ratified�and� approved."��
Short�Explanation :�An�equity�issue�can�be�ratified�by�shareholders�in�accordance�with�ASX� Listing�Rule�7.4.��This�allows�the�company�the�flexibility�to�issue�shares�and�options�to�subscribe� for�fully�paid�ordinary�shares�in�the�future�up�to�the�threshold�of�15%�of�its�total�ordinary� securities�in�any�12�month�period.��Please�refer�to�the�Explanatory�Statement�for�details.�
Voting�Exclusion : The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�a�person�who� participated�in�the�issue�and�any�associates�of�those�persons.��The�Company�need�not�disregard� a�vote�if�it�is�cast�by�a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with� the�directions�on�the�Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a� person�who�is�entitled�to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the� proxy�decides.
2.� RESOLUTION�2�–�PLACEMENT�OF�SHARES�AND�OPTIONS�TO�MR�ROBERT�HEALY�
To�consider�and,�if�thought�fit,�to�pass�the�following�resolution�as�an� ordinary�resolution :�
“That,�for�the�purpose�of�ASX�Listing�Rule�10.11�and�for�all�other�purposes,�approval�is�given�for�the� Directors�to�allot�and�issue�4,000,000�Shares�and�2,000,000�Options�to�Mr�Robert�Healy�(who�is�a� substantial�shareholder�in�the�Company�and�a�person�associated�with�Director,�Mr�Matt�Healy)�(or� his�nominee)�on�the�terms�and�conditions�set�out�in�the�Explanatory�Statement.”�
Voting�Exclusion:�� The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�Mr�Robert� Healy�and�any�of�his�associates.��However,�the�Company�need�not�disregard�a�vote�if�it�is�cast�by� a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with�the�directions�on�the� Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is�entitled� to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.�
3�
3.� RESOLUTION�3�–�PLACEMENT�OF�SHARES��
To�consider�and,�if�thought�fit,�to�pass,�with�or�without�amendment,�the�following�resolution�as� an� ordinary�resolution :�
“That,�for�the�purpose�of�ASX�Listing�Rule�7.1�and�for�all�other�purposes,�approval�is�given�for�the� Directors�to�allot�and�issue�up�to�50,000,000�Shares�at�an�issue�price�of�not�less�than 80%�of�the� market�price�as�determined�as�the�Volume�Weighted�Average�Price�for�the�five�(5)�day�period� preceding�the�date�of�Placement�on�the�terms�and�conditions�set�out�in�the�Explanatory� Statement.”�
Voting�Exclusion:� The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�any�person� who�may�participate�in�the�proposed�issue�and�a�person�who�might�obtain�a�benefit,�except�a� benefit�solely�in�the�capacity�as�a�holder�of�ordinary�securities,�and�any�associates�of�those� persons.��However,�the�Company�need�not�disregard�a�vote�if�it�is�cast�by�a�person�as�a�proxy�for� a�person�who�is�entitled�to�vote�in�accordance�with�the�directions�on�the�Proxy�Form�or�it�is�cast� by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is�entitled�to�vote,�in�accordance� with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.�
4.� RESOLUTION�4�–�ELECTION�OF�MR�MATT�HEALY�AS�A�DIRECTOR�
To�consider�and,�if�thought�fit,�to�pass�the�following�resolution�as�an� ordinary�resolution :�
“That�Mr�Matt�Healy,�being�a�Director�of�the�Company�who�retires�in�accordance�with�Rule�7.3(f)� of�the�Company’s�Constitution�and,�being�eligible,�offers�himself�for�election,�be�elected�as�a� Director�of�the�Company.”�
Voting�Exclusion:� The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�Mr�Matt� Healy�(or�his�nominee)�and�any�of�his�associates.��The�Company�need�not�disregard�a�vote�if�it�is� cast�by�a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with�the�directions� on�the�Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is� entitled�to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.�
5.� RESOLUTION�5�–�ISSUE�OF�DIRECTOR�OPTIONS�TO�MR�MATT�HEALY�
To�consider�and,�if�thought�fit,�to�pass�the�following�resolution�as�an� ordinary�resolution :�
“That,�subject�to�Shareholder�approval�for�Resolution�4,�for�the�purposes�of�Section�208�of�the� Corporations�Act�2001�(Cth),�ASX�Listing�Rule�10.11�and�for�all�other�purposes,�approval�is�given� for�the�Directors�to�allot�and�issue�1,000,000�Director�Options�to�Mr�Matt�Healy�(or�his�nominee)� on�the�terms�and�conditions�set�out�in�the�Explanatory�Statement.”�
Voting�Exclusion: �The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�Mr�Matt� Healy�(or�his�nominee)�and�any�of�his�associates.�The�Company�need�not�disregard�a�vote�if�it�is� cast�by�a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with�the�directions� on�the�Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is� entitled�to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.�
4�
6.� RESOLUTION�6�–�ISSUE�OF�DIRECTOR�OPTIONS�TO�MR�DAVID�HATCH�
To�consider�and,�if�thought�fit,�to�pass�the�following�resolution�as�an� ordinary�resolution :�
“That,�for�the�purposes�of�Section�208�of�the�Corporations�Act�2001�(Cth),�ASX�Listing�Rule�10.11� and�for�all�other�purposes,�approval�is�given�for�the�Directors�to�allot�and�issue�1,500,000� Director�Options�to�Mr�David�Hatch�(or�his�nominee)�on�the�terms�and�conditions�set�out�in�the� Explanatory�Statement.”�
Voting�Exclusion: �The�Company�will�disregard�any�votes�cast�on�this�Resolution�by�Mr�David� Hatch�(or�his�nominee)�and�any�of�his�associates.�The�Company�need�not�disregard�a�vote�if�it�is� cast�by�a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with�the�directions� on�the�Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is� entitled�to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.�
7.� RESOLUTION�7�–�NON�EXECUTIVE�DIRECTORS’�REMUNERATION�
To�consider�and,�if�thought�fit,�to�pass,�the�following�resolution�as�an� ordinary�resolution :�
“That,�for�the�purposes�of�the�Constitution�of�the�Company,�ASX�Listing�Rule�10.17�and�all�other� purposes,�the�Company�approves�the�maximum�aggregate�amount�that�may�be�paid�to�Non� Executive�Directors�as�remuneration�for�their�services�in�each�financial�year�to�be�set�at�$300,000� which�may�be�divided�among�those�Directors�in�the�manner�determined�by�the�Board�of�the� Company�from�time�to�time.”�
Voting�Exclusion: �The�Company�will�disregard�any�votes�cast�on�this�resolution�by�a�Director�of� the�Company�and�any�of�their�associates.�The�Company�need�not�disregard�a�vote�if�it�is�cast�by� a�person�as�a�proxy�for�a�person�who�is�entitled�to�vote�in�accordance�with�the�directions�on�the� Proxy�Form�or�it�is�cast�by�the�person�chairing�the�meeting�as�proxy�for�a�person�who�is�entitled� to�vote,�in�accordance�with�a�direction�on�the�Proxy�Form�to�vote�as�the�proxy�decides.
BY�ORDER�OF�THE�BOARD�
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IK�Macpherson� Company�Secretary� Dated:��24�June�2009�
5�
EXPLANATORY�STATEMENT�
This�Explanatory�Statement�has�been�prepared�for�the�information�of�Shareholders�in�connection�with� the�business�to�be�conducted�at�the�Extraordinary�General�Meeting�to�be�held�at�The�Celtic�Club,�48�Ord� Street,�West�Perth,�Western�Australia�6005�on�Thursday,�30�July�2009�at�2.00pm�(WST).�
The�purpose�of�this�Explanatory�Statement�is�to�provide�information�which�the�Directors�believe�to�be� material�to�Shareholders�in�deciding�whether�or�not�to�pass�the�Resolutions�in�the�Notice�of�Meeting.�
1.� RESOLUTION�1�–�RATIFICATION�OF�PRIOR�ISSUE�OF�SHARES�AND�OPTIONS�
1.1� General�
On�14�May�2009,�the�Company�announced�a�private�placement�of�11,000,000�Shares�and� 4,500,000�Options.��The�placement�was�to�be�completed�in�two�tranches,�comprising�7,000,000� Shares�(revised�to�7,350,000�Shares)�and�2,500,000�Options�(revised�to�2,675,000�Options)�to� sophisticated�investors�under�tranche�1�and�a�further�4,000,000�Shares�and�2,000,000�Options� under�tranche�2�(which�is�the�subject�of�a�separate�shareholder�approval�under�Resolution�2).�
ASX�Listing�Rule�7.1�provides�that�a�company�must�not,�subject�to�specified�exceptions,�issue�or� agree�to�issue�during�any�12�month�period�any�equity�securities,�or�other�securities�with�rights� to�conversion�to�equity�(such�as�an�option),�if�the�number�of�those�securities�exceeds�15%�of�the� number�of�securities�in�the�same�class�on�issue�at�the�commencement�of�that�12�month�period.�
ASX�Listing�Rule�7.4�sets�out�exceptions�to�ASX�Listing�Rule�7.1.��It�provides�that�where�a� company�in�general�meeting�ratifies�the�previous�issue�of�securities�made�pursuant�to�ASX� Listing�Rule�7.1�(and�provided�that�the�previous�issue�did�not�breach�ASX�Listing�Rule�7.1)�those� securities�will�be�deemed�to�have�been�made�with�shareholder�approval�for�the�purpose�of�ASX� Listing�Rule�7.1.�
Resolution�1�seeks�Shareholder�ratification�pursuant�to�ASX�Listing�Rule�7.4�for�the�issue�of� those�Shares�and�Options�( Ratification ).��By�ratifying�this�issue,�the�Company�will�retain�the� flexibility�to�issue�equity�securities�in�the�future�up�to�the�15%�threshold�set�out�in�ASX�Listing� Rule�7.1�without�the�requirement�to�obtain�prior�Shareholder�approval.�
1.2� Technical�Information�Required�by�ASX�Listing�Rule�7.4�
Pursuant�to�and�in�accordance�with�ASX�Listing�Rule�7.5,�the�following�information�is�provided�in� relation�to�the�Ratification:�
-
(a) a�total�of�7,350,000�Shares�and�2,675,000�Options�exercisable�at�$0.30�on�or�before�1� June�2011�were�issued�to�sophisticated�investors�on�22�May�2009.��The�placees�were�not� related�parties�of�the�Company;�
-
(b) the�issue�price�of�the�Shares�were:�
-
(i) 5,350,000�Shares�at�$0.20�per�Share;�and�
-
(ii) 2,000,000�Shares�at�$0.18�per�Share;�
-
(c) the�Shares�issued�were�all�fully�paid�ordinary�shares�in�the�capital�of�the�Company issued� on�the�same�terms�and�conditions�as�the�Company’s�existing�Shares;��
-
(d) the�Options�were�issued�for�nil�consideration;�
-
(e) the�Options�were�issued�on�the�terms�and�conditions�set�out�in�Annexure�A;�and�
-
(f) the�funds�raised�were�used�to�provide�working�capital�to�progress�the�acquisition�of�the� Bronzewing�Gold�Project�and�for�ongoing�feasibility�work�at�the�Leonora�Gold�Project.�
6�
2.� RESOLUTION�2�–�PLACEMENT�OF�SHARES�AND�OPTIONS�TO�MR�ROBERT�HEALY��
2.1 General�
- Resolution�2�seeks�Shareholder�approval�in�accordance�with�ASX�Listing�Rule�10.11�for�the�issue� of�4,000,000�Shares�at�an�issue�price�of�$0.20�per�Share�and�2,000,000�free�attaching�unlisted� Options�exercisable�at�$0.30�on�or�before�1�June�2011�to�Mr�Robert�Healy�(or�his�nominee).�
2.2� ASX�Listing�Rule�10.11�
ASX�Listing�Rule�10.11�requires�shareholder�approval�to�be�obtained�where�an�entity�issues,�or� agrees�to�issue,�securities�to�a�related�party,�or�a�person�whose�relationship�with�the�entity�or�a� related�party�is,�in�ASX’s�opinion,�such�that�approval�should�be�obtained,�unless�an�exception�in� ASX�Listing�Rule�10.12�applies.�
If�Resolution�2�is�passed,�Shares�will�be�issued�to�Mr�Robert�Healy,�the�father�of�Mr�Matt�Healy� who�is�a�Director�of�the�Company.��Under�Section�228(3)�of�the�Corporations�Act,�parents�of� directors�are�deemed�to�be�related�parties.�Mr�Robert�Healy�is�also�a�substantial�shareholder�in� the�Company.�
Accordingly,�approval�for�the�issue�of�the�Shares�to�Mr�Robert�Healy�is�required�pursuant�to�ASX� Listing�Rule�10.11.��
Approval�pursuant�to�ASX�Listing�Rule�7.1�is�not�required�in�order�to�issue�the�Shares�and� Options�to�Mr�Robert�Healy�as�approval�is�being�obtained�under�ASX�Listing�Rule�10.11.�� Shareholders�should�note�that�the�issue�of�the�Shares�to�Mr�Robert�Healy�will�not�be�included�in� the�15%�calculation�for�the�purposes�of�ASX�Listing�Rule�7.1.��
2.3� Technical�Information�Required�by�ASX�Listing�Rule�10.11�
Pursuant�to�and�in�accordance�with�ASX�Listing�Rule�10.13,�the�following�information�is�provided� to�Shareholders:�
-
(a) 4,000,000�Shares�to�be�issued�by�the�Company�at�$0.20�each;�
-
(b) 2,000,000�unlisted�Options�exercisable�at�$0.30�on�or�before�1�June�2011�to�be�issued�by� the�Company�for�nil�consideration;�
-
(c) the�allottee�will�be�Mr�Robert�Healy�(or�his�nominee);��
-
(d) the�Shares�and�Options�will�be�issued�no�later�than�one�(1)�month�after�the�date�of�the� Extraordinary�General�Meeting�(or�such�later�date�as�permitted�by�any�ASX�waiver�or� modification�of�the�ASX�Listing�Rules)�and�it�is�intended�that�allotment�will�occur�on�the� one�(1)�date;��
-
(e) Mr�Robert�Healy�is�the�father�of�Mr�Matt�Healy,�a�Director�of�the�Company;��
-
(f) Mr�Robert�Healy�is�a�substantial�shareholder�in�the�Company;� (g) the�Shares�issued�will�be�fully�paid�ordinary�shares�in�the�capital�of�the�Company�issued� on�the�same�terms�and�conditions�as�the�Company’s�existing�Shares;��
-
(h) the�Options�will�be�issued�on�the�terms�and�conditions�set�out�in�Annexure�A;�and�
-
(i) the�Company�intends�to�use�the�funds�raised�from�the�issue�of�Shares�to�provide�working� capital�to�progress�the�acquisition�of�the�Bronzewing�Gold�Project�and�for�ongoing� feasibility�work�at�the�Leonora�Gold�Project.�
7�
3.� RESOLUTION�3�–�PLACEMENT�OF�SHARES��
- 3.1� General�
On�2�April�2009,�the�Company�announced�that�it�had�entered�into�a�conditional�agreement�to� purchase�the�assets�of�the�Bronzewing�Gold�Project�from�the�Administrators�of�View�Gold�Pty� Ltd�and�View�Resources�Limited�(subject�to�Deeds�of�Company�Arrangement)(the� Bronzewing� Agreement ).��The�purchase�price�for�the�acquisition�of�the�Bronzewing�Gold�Project�is�$9.55� million�plus�the�assumption�of�various�environmental�bonding�obligations�totaling�$6.45�million.�
In�addition�to�the�purchase�price,�the�Company�will�need�to�source�additional�funding�to�re� commence�operations�at�the�Bronzewing�Gold�Project.�The�Company�is�currently�investigating� both�debt�and�equity�alternatives�for�this�extra�funding�amount.�
Under�the�terms�of�the�Bronzewing�Agreement,�the�Company’s�offer�to�purchase�becomes� unconditional�on�31�July�2009�and�the�purchase�price�and�associated�bonding�of�$16.0�million,� as�outlined�above,�must�be�settled�on�or�before�30�August�2009.�
The�purpose�of�the�Resolution�is�to�provide�the�Company�with�flexibility�to�raise�sufficient� capital�to�both�settle�the�Bronzewing�Agreement�within�the�stated�timeframe�and�maintain� minimum�working�capital�levels�whilst�the�additional�debt�and�equity�funding�alternatives�to� enable�project�recommencement�are�addressed.�
ASX�Listing�Rule�7.1�provides�that�a�company�must�not,�subject�to�specified�exceptions,�issue�or� agree�to�issue�during�any�12�month�period�any�equity�securities,�or�other�securities�with�rights� to�conversion�to�equity�(such�as�an�option),�if�the�number�of�those�securities�exceeds�15%�of�the� number�of�securities�in�the�same�class�on�issue�at�the�commencement�of�that�12�month�period� without�the�prior�approval�of�Shareholders�at�a�general�meeting.�
By�approving�this�issue,�the�Company�will�be�able�to�issue�up�to�50,000,000�new�Shares.�
-
3.2� Technical�Information�Required�by�ASX�Listing�Rule�7.1� Pursuant�to�and�in�accordance�with�ASX�Listing�Rule�7.3,�the�following�information�is�provided�to� Shareholders:�
-
(a) the�maximum�number�of�Shares�to�be�issued�is�50,000,000;�
-
(b) the�Shares�will�be�issued�no�later�than�three�(3)�months�after�the�date�of�the� Extraordinary�General�Meeting�(or�such�later�date�to�the�extent�permitted�by�any�ASX� waiver�or�modification�of�the�ASX�Listing�Rules)�and�it�is�intended�that�allotment�will�occur� on�the�one�(1)�date;�
-
(c) the�issue�price�per�Share�will�be�not�less�than�80%�of�the�market�price�as�determined�as� the�Volume�Weighted�Average�Price�for�the�five�(5)�day�period�preceding�the�date�of� placement;�
-
(d) the�Shares�will�be�issued�to�sophisticated�and�institutional�investors�to�be�determined�by� the�Directors�at�such�time.��None�of�these�persons�will�be�related�parties�of�the�Company;�
-
(e) the�Shares�issued�will�be�fully�paid�ordinary�shares�in�the�capital�of�the�Company�and�carry� the�same�terms�and�conditions�as�the�Company’s�existing�Shares;�and�
-
(f) the�Company�intends�to�use�the�funds�raised�from�the�issue�of�Shares�to�progress�the� acquisition�of�the�Bronzewing�Gold�Project�and�for�ongoing�feasibility�work�at�the�Leonora� Gold�Project.�
8�
4.� RESOLUTION�4�–�ELECTION�OF�MR�MATT�HEALY�AS�A�DIRECTOR�
Mr�Matt�Healy�was�appointed�by�the�Directors�on�9�April�2009�in�accordance�with�Rule�7.2�of� the�Constitution,�which�allows�the�Board�to�fill�a�casual�vacancy.�
In�accordance�with�Rule�7.3(f)�of�the�Company’s�Constitution,�a�Director�appointed�during�the� year�must�retire�at�the�next�general�meeting�of�the�Company.��Therefore,�Mr�Matt�Healy�must� retire�at�this�meeting�and,�being�eligible,�offers�himself�for�re�election�as�a�Director�of�the� Company.�
Mr�Matt�Healy�is�an�executive�for�an�international�property�development,�construction�and� asset�management�company.��He�holds�a�Bachelor�of�Applied�Science�(Engineering)�and�is� currently�completing�an�Executive�MBA.��His�expertise�will�prove�invaluable�as�the�Company� progresses�to�producer�status.���
Your�Directors�have�reviewed�the�necessary�competencies�of�the�Board�members�and�each� candidate’s�contribution�to�the�Board�and�unanimously�recommend�that�Shareholders�vote�in� favour�of�Mr�Matt�Healy’s�election.�
5.� RESOLUTIONS�5�&�6�–�ISSUE�OF�DIRECTOR�OPTIONS��
5.1�
General�
The�Company�has�agreed,�subject�to�obtaining�Shareholder�approval,�to�allot�and�issue� 1,000,000�Director�Options�to�Mr�Matt�Healy�and�1,500,000�Director�Options�to�Mr�David�Hatch� ( Related�Parties )�on�the�terms�and�conditions�set�out�below.�
As�set�out�in�this�Explanatory�Statement,�the�grant�of�a�‘financial�benefit’�to�related�parties�of�a� public�company�requires�approval�under�Chapter�2E�of�the�Corporations�Act.��As�Directors,�Mr� Matt�Healy�and�Mr�David�Hatch�are�considered�related�parties�of�the�Company�and�the� proposed�issue�of�Director�Options�amounts�to�the�provision�of�a�‘financial�benefit’.��
In�addition,�ASX�Listing�Rule�10.11�also�requires�shareholder�approval�to�be�obtained�where�an� entity�issues,�or�agrees�to�issue,�securities�to�a�related�party,�or�a�person�whose�relationship� with�the�entity�or�a�related�party�is,�in�ASX’s�opinion,�such�that�approval�should�be�obtained,� unless�an�exception�in�ASX�Listing�Rule�10.12�applies.�
It�is�the�view�of�the�Directors�that�the�exceptions�set�out�in�Sections�210�to�216�of�the�Corporations� Act�and�ASX�Listing�Rule�10.12�do�not�apply�in�the�current�circumstances.��Accordingly,�Shareholder� approval�is�sought�for�the�grant�of�Director�Options�to�the�Related�Parties.�
5.2� Shareholder�Approval�(Chapter�2E�of�the�Corporations�Act�and�ASX�Listing�Rule�10.13)�
Pursuant�to�and�in�accordance�with�the�requirements�of�Sections�217�to�227�of�the�Corporations� Act�and�ASX�Listing�Rule�10.13,�the�following�information�is�provided�in�relation�to�the�proposed� grant�of�Director�Options:�
-
(a) the�Related�Parties�are�Mr�Matt�Healy�and�Mr�David�Hatch�and�they�are�related�parties�by� virtue�of�being�Directors;�
-
(b) the�maximum�number�of�Director�Options�(being�the�nature�of�the�financial�benefit�being� provided)�to�be�granted�to�the�Related�Parties�is:��
-
(i)�1,000,000�Director�Options�to�Mr�Matt�Healy;�and�
-
(ii)�1,500,000�Director�Options�to�Mr�David�Hatch;�
-
(c) the�Director�Options�will�be�granted�for�nil�cash�consideration,�accordingly�no�funds�will� be�raised;�
9�
-
(d) the�Director�Options�will�be�granted�to�the�Related�Parties�no�later�than�one�(1)�month� after�the�date�of�the�Extraordinary�General�Meeting�(or�such�later�date�as�permitted�by� any�ASX�waiver�or�modification�of�the�ASX�Listing�Rules)�and�it�is�anticipated�that�the� Director�Options�will�be�issued�on�one�(1)�date;�
-
(e) the�Director�Options�have�varying�exercise�prices,�vesting�dates�and�expiry�dates�as� follows:�
| MrMattHealy | MrMattHealy | MrMattHealy | MrMattHealy | MrMattHealy |
|---|---|---|---|---|
| Series | Numbers | ExercisePrice | VestingDate | ExpiryDate |
| 1 | 1,000,000 | 30cents | Six(6)monthsafter dateofissue |
30November2011 |
| MrDavidHatch | ||||
| Series | Numbers | ExercisePrice | VestingDate | ExpiryDate |
| 1 | 500,000 | 25cents | 25May2010 | 25May2013 |
| 2 | 500,000 | * | 25May2011 | 25May2014 |
| 3 | 500,000 | ** | 25May2012 | 25May2015 |
-
*� To�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2010�
-
**� To�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2011
-
(f) other�terms�and�conditions�of�the�Director�Options�are�set�out�in�Annexure�B;�
-
(g) the�value�of�the�Director�Options�and�the�pricing�methodology�is�set�out�in�Annexure�C;�
-
(h) as�at�the�date�of�this�Notice,�the�Directors’�interests�in�the�securities�of�the�Company�are� as�tabled�below:�
| stabledbelow: | |||
|---|---|---|---|
| RelatedParty | Shares | UnlistedOptions | TotalSecuritiesHeld |
| MrMattHealy | 100,000 | � | 100,000 |
| MrDavidHatch | � | � | � |
- (i) the�remuneration�and�emoluments�from�the�Company�to�the�Related�Parties�for�both�the� current�and�previous�financial�year�are�as�follows:�
| RelatedParty | 2009/2010 | 2008/2009 |
|---|---|---|
| MrMattHealy | $35,000plus9%superannuation | N/A |
| MrDavidHatch | $300,000plus9%superannuation | N/A |
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(j) if�the�Director�Options�granted�to�the�Related�Parties�are�exercised,�a�total�of�2,500,000� Shares�would�be�allotted�and�issued.��The�Company�presently�has�on�issue�149,971,872� Shares�and�13,125,000�Options�exercisable�into�Shares�over�various�exercise�periods�and� at�various�exercise�prices.��The�dilution�effect�of�exercise�of�the�2,500,000�Director� Options�as�proposed�above�is�1.7%�of�Shares�on�issue�and�1.5%�on�a�fully�diluted�basis;�
-
(k)� the�market�price�for�Shares�during�the�term�of�the�Director�Options�would�normally� determine�whether�or�not�the�Director�Options�are�exercised.��If,�at�any�time�any�of�the� Director�Options�are�exercised�and�the�Shares�are�trading�on�ASX�at�a�price�that�is�higher� than�the�exercise�price�of�the�Director�Options,�there�may�be�a�perceived�cost�to�the� Company.��The�trading�history�of�the�Shares�on�ASX�in�the�12�months�before�the�date�of� this�Notice�of�Extraordinary�General�Meeting�is�set�out�below:�
| Price | Date | |
|---|---|---|
| Highest | 39.5cents | 6March2009 |
| Lowest | 12cents | 21November2008 |
| Last | 19cents | 23June2009 |
10�
-
(l) the�primary�purpose�of�the�grant�of�Director�Options�to�the�Related�Parties�is�to�provide� cost�effective�consideration�to�the�Related�Parties�for�their�ongoing�commitment�and� contribution�to�the�Company�in�their�role�as�a�Director.��The�Board�does�not�consider�that� there�are�any�significant�opportunity�costs�to�the�Company�or�benefits�foregone�by�the� Company�in�issuing�the�Director�Options�upon�the�terms�proposed;�
-
(m) the�Board�acknowledges�the�grant�of�options�to�a�Non�Executive�Director�is�contrary�to� Recommendation�8.2�of�the�ASX�Corporate�Governance�Principles�and�Recommendations.�� However,�the�Board�considers�the�grant�of�options�reasonable�in�the�circumstances,�given� the�necessity�to�attract�the�highest�calibre�of�professionals�to�the�Company,�whilst� maintaining�the�Company’s�cash�reserves;�
-
(n) Mr�Matt�Healy�declines�to�make�a�recommendation�to�Shareholders�in�relation�to� Resolution�5�due�to�his�material�personal�interest�in�the�outcome�of�the�Resolution.��The� other�Directors,�who�do�not�have�a�material�interest�in�the�outcome�of�Resolution�5,� recommend�that�Shareholders�vote�in�favour�of�Resolution�5.��The�Board�(other�than�Mr� Healy)�is�not�aware�of�any�other�information�that�would�be�reasonably�required�by� Shareholders�to�allow�them�to�make�a�decision�whether�it�is�in�the�best�interests�of�the� Company�to�pass�the�Resolution;�and�
-
(o) Mr�David�Hatch�declines�to�make�a�recommendation�to�Shareholders�in�relation�to� Resolution�6�due�to�his�material�personal�interest�in�the�outcome�of�the�Resolution.��The� other�Directors,�who�do�not�have�a�material�interest�in�the�outcome�of�Resolution�6,� recommend�that�Shareholders�vote�in�favour�of�Resolution�6.��The�Board�(other�than�Mr� Hatch)�is�not�aware�of�any�other�information�that�would�be�reasonably�required�by� Shareholders�to�allow�them�to�make�a�decision�whether�it�is�in�the�best�interests�of�the� Company�to�pass�the�Resolution.�
Approval�pursuant�to�ASX�Listing�Rule�7.1�is�not�required�in�order�to�issue�the�Director�Options� to�the�Related�Parties�as�approval�is�being�obtained�under�ASX�Listing�Rule�10.11.��Shareholders� should�note�that�the�issue�of�the�Director�Options�will�not�be�included�in�the�15%�calculation�for� the�purposes�of�ASX�Listing�Rule�7.1.
6.� RESOLUTION�7�–�NON�EXECUTIVE�DIRECTORS’�REMUNERATION�
Rule�7.5�of�the�Company’s�Constitution�requires�that�the�maximum�aggregate�remuneration� that�may�be�paid�to�Non�Executive�Directors�of�the�Company�be�set�by�the�members�at�a� general�meeting.�
Resolution�7�seeks�Shareholder�approval�to�set�the�maximum�aggregate�remuneration�that�may� be�paid�to�Non�Executive�Directors�at�$300,000�per�annum.��This�aggregate�amount�has�been� determined�after�reviewing�similar�companies�listed�on�ASX�and�the�Directors�believe�that�this� level�of�remuneration�is�in�line�with�corporate�remuneration�of�similar�companies�and�the� number�of�Directors.�
Currently,�the�maximum�aggregate�amount�of�fees�that�may�be�paid�to�Non�Executive�Directors� of�the�Company�is�$200,000�per�annum�as�approved�by�shareholders�at�the�Annual�General� Meeting�on�23�November�2006.��The�total�remuneration�that�may�be�paid�to�Non�Executive� Directors�on�aggregate�needs�to�be�approved�in�accordance�with�Rule�7.5�of�the�Constitution� and�ASX�Listing�Rule�10.17.�
It�is�noted�that�it�is�not�presently�intended�to�distribute�all�of�the�$300,000�(if�approved)�in�the� current�year,�rather�it�will�assist�in�accommodating�any�increase�in�the�number�of�Directors�and� provide�the�flexibility�to�allow�payment�of�appropriate�fees�over�time.�
The�Directors,�other�than�the�Non�Executive�Directors�of�the�Company,�recommend�that� Shareholders�vote�in�favour�of�this�resolution.�
11�
GLOSSARY�
$� means�Australian�dollars.�
ASIC �means�the�Australian�Securities�and�Investments�Commission.�
ASX �means�ASX�Limited.�
ASX�Listing�Rules �means�the�Listing�Rules�of�ASX.�
Board �means�the�current�board�of�Directors�of�the�Company.�
Business�Day �means�Monday�to�Friday�inclusive,�except�New�Year’s�Day,�Good�Friday,�Easter�Monday,� Christmas�Day,�Boxing�Day�and�any�other�day�that�ASX�declares�is�not�a�business�day.�
Company �means�Navigator�Resources�Limited�(ABN�82�063�366�487).�
Constitution �means�the�Company’s�constitution.�
Corporations�Act �means�the�Corporations�Act�2001�(Cth).�
Director�Option� means�an�Option�granted�pursuant�to�Resolutions�5�and�6�with�the�terms�and� conditions�set�out�in�Annexure�B.�
Directors �mean�the�current�Directors�of�the�Company.�
Explanatory�Statement �means�the�explanatory�statement�accompanying�the�Notice�of�Meeting.�
Extraordinary�General�Meeting �means�the�meeting�convened�by�the�Notice�of�Meeting.�
Notice�of�Meeting �or� Notice�of�Extraordinary�General�Meeting �means�this�notice�of�general�meeting� including�the�Explanatory�Statement.�
Option� means�an�option�to�acquire�a�Share.�
Optionholder� means�a�holder�of�an�Option�or�Director�Option�as�the�context�requires.�
Resolutions �means�the�resolutions�set�out�in�the�Notice�of�Meeting,�or�any�one�of�them,�as�the�context� requires.�
Share �means�a�fully�paid�ordinary�share�in�the�capital�of�the�Company.�
Shareholder �means�a�holder�of�a�Share.�
VWAP� means�volume�weighted�average�price�of�a�Share,�as�quoted�on�ASX.
WST �means�Western�Standard�Time�as�observed�in�Perth,�Western�Australia.�
12�
ANNEXURE�A�–�TERMS�AND�CONDITIONS�OF�OPTIONS�
The�Options�entitle�the�holder�to�subscribe�for�Shares�on�the�following�terms�and�conditions:�
-
Each�Option�shall�entitle�the�holder�the�right�to�subscribe�(in�cash)�for�one�(1)�fully�paid�ordinary� share�in�the�capital�of�the�Company.�
-
The�Options�will�expire�at�5.00pm�WST�on�1�June�2011�( Expiry�Date ).��Subject�to�Clause�6�hereof,�the� Options�may�be�exercised�at�any�time�and�prior�to�the�Expiry�Date.��Options�not�so�exercised�before� the�Expiry�Date�will�automatically�lapse�on�the�Expiry�Date.�
-
Each�Share�allotted�as�a�result�of�the�exercise�of�any�Option�will,�subject�to�the�Constitution�of�the� Company,�rank�in�all�respects�pari�passu�with�the�existing�ordinary�fully�paid�shares�in�the�capital�of� the�Company�on�issue�at�the�date�of�allotment.�
-
A�registered�owner�of�an�option�( Optionholder )�will�not�be�entitled�to�attend�or�vote�at�any�meeting� of�the�members�of�the�Company�unless�they�are,�in�addition�to�being�an�Optionholder,�a�member�of� the�Company.�
-
Options�are�transferable�at�any�time�prior�to�the�Expiry�Date.�
-
Method�of�Exercise�of�Options�
-
(a)�The�Company�will�provide�to�each�Optionholder�a�notice�that�is�to�be�completed�when� exercising�the�Options�( Notice�of�Exercise�of�Options ).��Options�may�be�exercised�by�the� Optionholder�completing�the�Notice�of�Exercise�of�Options�and�forwarding�the�same�to�the� Secretary�of�the�Company�to�be�received�prior�to�the�Expiry�Date.��The�Notice�of�Exercise�of� Options�must�state�the�number�of�Options�exercised�and�the�consequent�number�of�ordinary� Shares�in�the�capital�of�the�Company�to�be�allotted;�which�number�of�Options�must�be�a� multiple�of�10,000�if�only�part�of�the�Optionholder’s�total�Options�are�exercised.�
-
(b)�The�Notice�of�Exercise�of�Options�by�an�Optionholder�must�be�accompanied�by�payment�in�full� for�the�relevant�number�of�Shares�being�subscribed,�being�an�amount�of�30�cents�per�Share� respectively�( Exercise�Price ).�
-
(c)�Subject�to�Clause�6(a)�hereof,�the�exercise�of�less�than�all�of�an�Optionholder’s�Options�will�not� prevent�the�Optionholder�from�exercising�the�whole�or�any�part�of�the�balance�of�the� Optionholder’s�entitlement�under�the�Optionholder’s�remaining�Options.�
-
(d)�Within�10�days�from�the�date�the�Optionholder�properly�exercises�Options�held�by�the� Optionholder,�the�Company�shall�issue�and�allot�to�the�Optionholder�that�number�of�fully�paid� ordinary�shares�in�the�capital�of�the�Company�so�subscribed�for�by�the�Optionholder.�
-
(e)�The�Company�will�not�apply�for�quotation�of�the�Options�on�ASX.��However,�the�Company�will� apply�for�quotation�of�all�Shares�allotted�pursuant�to�the�exercise�of�the�Options�on�ASX�within� 10�Business�Days�after�the�date�of�allotment�of�those�securities.�
-
In�the�event�of�a�reconstruction�(including�consolidation,�sub�division,�reduction�or�return)�of�the� issued�capital�of�the�Company,�all�rights�of�the�Optionholder�will�be�changed�to�the�extent�necessary� to�comply�with�the�ASX�Listing�Rules�applying�to�the�reconstruction�of�capital,�at�the�time�of�the� reconstruction.�
-
There�are�no�participating�rights�or�entitlements�inherent�in�the�Options�to�participate�in�any�new� issues�of�capital�which�may�be�made�or�offered�by�the�Company�to�its�Shareholders�from�time�to� time�prior�to�the�Expiry�Date�unless�and�until�the�Options�are�exercised.��The�Company�will�ensure� that�during�the�exercise�period,�the�record�date�for�the�purposes�of�determining�entitlements�to�any� new�such�issue,�will�be�at�least�six�(6)�Business�Days�after�such�new�issues�are�announced�(or�such� other�date�if�required�under�the�ASX�Listing�Rules)�in�order�to�afford�the�Optionholder�an� opportunity�to�exercise�the�Options�held�by�the�Optionholder.�
-
There�are�no�rights�to�change�the�exercise�price�or�the�number�of�underlying�ordinary�Shares�if�there� is�a�pro�rata�issue�or�bonus�issue�to�the�holders�of�ordinary�Shares.�
13�
ANNEXURE�B�–�TERMS�AND�CONDITIONS�OF�DIRECTOR�OPTIONS�
The�Director�Options�entitle�the�holder�to�subscribe�for�Shares�on�the�following�terms�and�conditions:�
-
Each�Director�Option�shall�entitle�the�holder�the�right�to�subscribe�(in�cash)�for�one�(1)�fully�paid� ordinary�share�in�the�capital�of�the�Company.��To�obtain�the�right�given�by�each�Director�Option,�the� Optionholder�must�exercise�the�Director�Options�in�accordance�with�the�terms�and�conditions�of�the� Director�Options.�
-
The�Director�Options�shall�comprise�of�the�following�exercise�prices�( Exercise�Price ),�expiry�dates� ( Expiry�Date )�and�vesting�dates�( Vesting�Date )�as�follows:�
���Mr�Matt�Healy
| Series | Numbers | ExercisePrice | VestingDate | ExpiryDate |
|---|---|---|---|---|
| 1 | 1,000,000 | 30cents | Six(6)monthsafterdate ofissue |
30November2011 |
���Mr�David�Hatch�
| Series | Numbers | ExercisePrice | VestingDate | ExpiryDate |
|---|---|---|---|---|
| 1 | 500,000 | 25cents | 25May2010 | 25May2013 |
| 2 | 500,000 | * | 25May2011 | 25May2014 |
| 3 | 500,000 | ** | 25May2012 | 25May2015 |
- *� To�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2010�
**� To�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2011
-
Subject�to�Clause�8�hereof,�the�Options�may�be�exercised�at�any�time�after�the�Vesting�Date�term� and�prior�to�the�Expiry�Date.��The�Director�Options�may�be�exercised�prior�to�the�Vesting�Date�if�a� takeover�bid�is�made�for�the�Company�or�a�scheme�of�arrangement�is�put�to�the�Shareholders�or� unless�otherwise�approved�by�Shareholders.��Director�Options�not�so�exercised�shall�automatically� expire�on�the�earlier�of�the�Expiry�Date�or�three�(3)�months�from�the�date�the�holder�ceases�to�be�a� Director�of�the�Company.�
-
Any�Director�Options�which�have�not�vested�at�the�time�the�Optionholder�ceases�to�be�a�Director� shall�automatically�lapse.�
-
Each�Share�allotted�as�a�result�of�the�exercise�of�any�Director�Option�will,�subject�to�the�Constitution� of�the�Company,�rank�in�all�respects�pari�passu�with�the�existing�ordinary�fully�paid�shares�in�the� capital�of�the�Company�on�issue�at�the�date�of�allotment.�
-
A�registered�owner�of�an�option�( Optionholder )�will�not�be�entitled�to�attend�or�vote�at�any�meeting� of�the�members�of�the�Company�unless�they�are,�in�addition�to�being�an�Optionholder,�a�member�of� the�Company.�
-
The�Director�Options�are�transferable�at�any�time�prior�to�the�Expiry�Date.�
-
Method�of�Exercise�of�Director�Options�
-
(a)�The�Company�will�provide�to�each�Optionholder�a�notice�that�is�to�be�completed�when� exercising�the�Director�Options�( Notice�of�Exercise�of�Director�Options ).��Director�Options�may� be�exercised�by�the�Optionholder�completing�the�Notice�of�Exercise�of�Director�Options�and� forwarding�the�same�to�the�Secretary�of�the�Company�to�be�received�prior�to�the�Expiry�Date.�� The�Notice�of�Exercise�of�Director�Options�must�state�the�number�of�Director�Options�exercised� and�the�consequent�number�of�Shares�in�the�capital�of�the�Company�to�be�allotted;�which� number�of�Director�Options�must�be�a�multiple�of�10,000�if�only�part�of�the�Optionholder’s�total� Director�Options�are�exercised.�
-
(b)�The�Notice�of�Exercise�of�Director�Options�by�an�Optionholder�must�be�accompanied�by� payment�in�full�for�the�relevant�number�of�Shares�being�subscribed.�
14�
-
(c)�Subject�to�Clause�8(a)�hereof,�the�exercise�of�less�than�all�of�an�Optionholder’s�Director�Options� will�not�prevent�the�Optionholder�from�exercising�the�whole�or�any�part�of�the�balance�of�the� Optionholder’s�entitlement�under�the�Optionholder’s�remaining�Director�Options.�
-
(d)�Within�10�days�from�the�date�the�Optionholder�properly�exercises�Director�Options�held�by�the� Optionholder,�the�Company�shall�issue�and�allot�to�the�Optionholder�that�number�of�fully�paid� ordinary�shares�in�the�capital�of�the�Company�so�subscribed�for�by�the�Optionholder.�
-
(e)�The�Company�will�not�apply�for�quotation�of�the�Director�Options�on�ASX.��However,�the� Company�will�apply�for�quotation�of�all�Shares�allotted�pursuant�to�the�exercise�of�the�Options� on�ASX�within�10�Business�Days�after�the�date�of�allotment�of�those�securities.�
-
In�the�event�of�a�reconstruction�(including�consolidation,�sub�division,�reduction�or�return)�of�the� issued�capital�of�the�Company,�all�rights�of�the�Optionholder�will�be�changed�to�the�extent�necessary� to�comply�with�the�ASX�Listing�Rules�applying�to�the�reconstruction�of�capital,�at�the�time�of�the� reconstruction.�
-
There�are�no�participating�rights�or�entitlements�inherent�in�the�Director�Options�to�participate�in� any�new�issues�of�capital�which�may�be�made�or�offered�by�the�Company�to�its�Shareholders�from� time�to�time�prior�to�the�Expiry�Date�unless�and�until�the�Director�Options�are�exercised.��The� Company�will�ensure�that�during�the�exercise�period,�the�record�date�for�the�purposes�of� determining�entitlements�to�any�new�such�issue,�will�be�at�least�six�(6)�Business�Days�after�such�new� issues�are�announced�(or�such�other�date�if�required�under�the�ASX�Listing�Rules)�in�order�to�afford� the�Optionholder�an�opportunity�to�exercise�the�Director�Options�held�by�the�Optionholder.�
-
There�are�no�rights�to�change�the�exercise�price�or�the�number�of�underlying�ordinary�Shares�if�there� is�a�pro�rata�issue�or�bonus�issue�to�the�holders�of�ordinary�Shares.�
15�
ANNEXURE�C�–�VALUATON�OF�DIRECTOR�OPTIONS�
The�Director�Options�to�be�issued�to�the�Related�Parties�pursuant�to�Resolutions�5�and�6�have�been� valued�by�internal�management�based�on�a�valuation�methodology�using�the�Black�&�Scholes�Option� Pricing�Model,�which�is�the�most�widely�used�and�recognised�model�for�pricing�options.��The�acceptance� of�this�model�is�due�to�its�derivation�being�grounded�in�economic�theory.��The�value�of�an�option� calculated�by�the�Black�&�Scholes�Model�is�a�function�of�a�number�of�variables�and�is�rounded�to�the� nearest�one�hundredth�of�a�cent.�The�assessment�of�the�estimated�value�of�the�Director�Options�has� been�prepared�applying�the�following�assumptions:�
Mr�Matt�Healy
| MrMattHealy | |
|---|---|
| Valuationdate | 21May2009 |
| Expirydate | 30November2011 |
| Spotprice | 20cents |
| Exerciseprice | 30cents |
| Riskfreerate | 3.63% |
| Volatility | 90% |
| ValueperOption | 9.0cents |
| NumberofOptions | 1,000,000 |
| Totalvalue | $90,000 |
Mr�David�Hatch�
| MrDavidHatch | |||
|---|---|---|---|
| Valuationdate | 21May2009 | 21May2009 | 21May2009 |
| Expirydate | 25May2013 | 25May2014 | 25May2015 |
| Spotprice | 20cents | 20cents | 20cents |
| Exerciseprice | 25cents | 30cents* | 40cents** |
| Riskfreerate | 4.65% | 4.65% | 4.65% |
| Volatility | 90% | 90% | 90% |
| ValueperOption | 12.5cents | 13.1cents | 13.4cents |
| NumberofOptions | 500,000 | 500,000 | 500,000 |
| Totalvalue | $62,500 | $65,500 | $67,000 |
*���The�final�exercise�price�will�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2010�
**�The�final�exercise�price�will�be�determined�as�the�VWAP�for�the�five�(5)�days�preceding�25�May�2011
The�estimated�valuation�has�assumed�that�the�issue�date�of�the�Director�Options�is�21�May�2009.��The� valuation�is�not�a�representative�valuation�of�the�Director�Options�at�the�proposed�date�of�issue.��In� order�for�this�valuation�to�be�provided,�a�new�valuation�model�would�need�to�be�run�at�the�time�of�issue� (ie.�immediately�following�the�Extraordinary�General�Meeting�of�Shareholders).�
In�deriving�the�valuation,�the�Black�&�Scholes�Model�relies�upon�the�following�assumptions:�
-
there�are�no�transaction�costs,�options�and�shares�are�infinitely�divisible,�and�information�is� available�to�all�without�cost;�
-
the�risk�free�interest�rate�is�known�and�constant�throughout�the�duration�of�the�option�contract;�
-
the�underlying�shares�do�not�pay�a�dividend;�and�
-
share�prices�behave�in�a�manner�consistent�with�a�random�walk�in�continuous�time.�
Any�change�in�the�variables�applied�in�the�Black�&�Scholes�Model�between�the�date�of�the�valuation�and� the�date�the�Director�Options�are�granted�would�have�an�impact�on�their�value.�
16�
NAVIGATOR�RESOURCES�LIMITED� ABN:�82�063�366�487� PROXY�FORM�
Company�Secretary,�Navigator�Resources�Limited� PO�Box�276,�WEST�PERTH��WA��6872� Ph:�+61�8�9226�5311;��Fax:�+61�8�9226�5411
��
EXTRAORDINARY�GENERAL�MEETING�
I/We�
being�a�member(s)�of�Navigator�Resources�Limited�and�entitled�to�attend�and�vote�at�the�Extraordinary�General�Meeting,� hereby�appoint�
(Name�of�proxy)� OR� (Put�an� X in�this�box�if�you�wish�to�appoint�the�Chair�of�the�Extraordinary�General�Meeting�as�your� proxy)�
or�failing�the�person/body�corporate�so�named�or,�if�no�person/body�corporate�is�named,�the�Chair�of�the�Extraordinary� General�Meeting,�or�the�Chair’s�nominee,�to�vote�in�accordance�with�the�following�directions,�or,�if�no�directions�have�been� given,�as�the�proxy�sees�fit,�at�the�Extraordinary�General�Meeting�of�the�Company�to�be�held�at�2.00pm�(WST)�on�Thursday,�30� July�2009�at�The�Celtic�Club,�48�Ord�Street,�West�Perth,�Western�Australia�6005�(and�at�any�adjournment�thereof)�(Meeting).�
If�no�directions�are�given,�the�Chair�will�vote�in�favour�of�all�of�the�Resolutions.�
Voting�on�Business�of�the�Extraordinary�General�Meeting�
Please�indicate�your�voting�intentions�by�placing�an� X �in�the�appropriate�box. ��FOR� ���AGAINST� ABSTAIN� Resolution�1�–�Ratification�of�Prior�Issue� Resolution�2�–�Placement�of�Shares�and�Options�to�Mr�Robert�Healy� Resolution�3�–�Placement�of�Shares� Resolution�4�–�Re�election�of�Mr�Matt�Healy�as�a�Director� Resolution�5�–�Grant�of�Director�Options�to�Mr�Matt�Healy� Resolution�6�–�Grant�of�Director�Options�to�Mr�David�Hatch� Resolution�7�–�Non�Executive�Directors’�Remuneration�
OR�
Place�an� X �in�the�box�if�the�Chair�of�the�Extraordinary�General�Meeting�is�appointed�as�your�proxy,�or�may�be�appointed�by�default,� and�you�do� not �wish�to�direct�your�proxy�how�to�vote�as�your�proxy�in�respect�of�Resolutions�1�to�7.�
By�marking�this�box,�you�acknowledge�that�the�Chair�of�the�Extraordinary�General�Meeting�may�exercise�your�proxy�even�if�he�has�an�interest�in� the�outcome�of�Resolutions�1�to�7�and�that�votes�cast�by�the�Chair�of�the�Extraordinary�General�Meeting�for�Resolutions�1�to�7�other�than�as� proxy�holder�will�be�disregarded�because�of�that�interest.��If�you�do�not�mark�this�box,�and�you�have�not�directed�your�proxy�how�to�vote,�the� Chair�will�not�cast�your�votes�on�Resolutions�1�to�7�and�your�votes�will�not�be�counted�in�calculating�the�required�majority�if�a�poll�is�called�on� Resolutions�1�to�7.�
If�you�mark�the�abstain�box�for�a�particular�Resolution,�you�are�directing�your�proxy�not�to�vote�on�that�Resolution�on�a�show�of�hands�or�on�a� poll�and�your�votes�will�not�be�counted�in�computing�the�required�majority�on�a�poll.�
If�two�proxies�are�being�appointed,�the�proportion�of�voting�rights�this�proxy�represents�is�___�%.�
Signed�this��������������������������������day�of������������������������������������2009�
By:�
Individuals�and�joint�holders� Companies�(affix�common�seal�if�appropriate)� Signature� Director� Sole�Director�&� Signature� Sole�Company�Secretary� Director/� Signature� Company�Secretary�
INSTRUCTIONS�FOR�COMPLETING�‘PROXY�FORM’
-
A�member�entitled�to�attend�and�vote�at�a�general�meeting�is�entitled�to�appoint�not�more�than�two� (2)�proxies�to�attend�and�vote�on�a�poll�on�their�behalf.��The�appointment�of�a�second�proxy�must�be� done�on�a�separate�copy�of�the�Proxy�Form.��If�two�(2)�proxies�are�appointed,�each�proxy�must�be� allocated�a�proportion�of�the�member’s�voting�rights.��If�a�member�appoints�two�(2)�proxies�and�the� appointment�does�not�specify�this�proportion,�each�proxy�may�exercise�half�(½)�the�votes.��A�duly� appointed�proxy�need�not�be�a�member�of�the�Company.�
-
Where�a�member’s�holding�is�in�one�(1)�name�the�holder�must�sign�the�Proxy�Form.��Where�the� holding�is�in�more�than�one�(1)�name,�all�members�should�sign.�
-
Where�a�Proxy�Form�or�form�of�appointment�of�corporate�representative�is�lodged�and�is�executed� under�a�power�of�attorney,�the�power�of�attorney�must�be�lodged�in�like�manner�as�this�Proxy�Form.�
-
Corporate�members�should�comply�with�the�execution�requirements�set�out�on�the�Proxy�Form�or� otherwise�with�the�provisions�of�Section�127�of�the�Corporations�Act.��Section�127�of�the� Corporations�Act�provides�that�a�company�may�execute�a�document�without�using�its�common�seal� if�the�document�is�signed�by:�
-
two�(2)�directors�of�the�company;�
-
a�director�and�a�company�secretary�of�the�company;�or�
-
for�a�proprietary�company�that�has�a�sole�director�who�is�also�the�sole�company�secretary�–�that� director.�
For�the�Company�to�rely�on�the�assumptions�set�out�in�Section�129(5)�and�(6)�of�the�Corporations� Act,�a�document�must�appear�to�have�been�executed�in�accordance�with�Section�127(1)�or�(2).��This� effectively�means�that�the�status�of�the�persons�signing�the�document�or�witnessing�the�affixing�of� the�seal�must�be�set�out�and�conform�to�the�requirements�of�Section�127(1)�or�(2)�as�applicable.��In� particular,�a�person�who�witnesses�the�affixing�of�a�common�seal�and�who�is�the�sole�director�and� sole�company�secretary�of�the�company�must�state�that�next�to�his�or�her�signature.�
-
Completion�of�a�Proxy�Form�will�not�prevent�individual�members�from�attending�the�Extraordinary� General�Meeting�in�person�if�they�wish.��Where�a�member�completes�and�lodges�a�valid�Proxy�Form� and�attends�the�Extraordinary�General�Meeting�in�person,�then�the�proxy’s�authority�to�speak�and� vote�for�that�member�is�suspended�whilst�the�member�is�present�at�the�Extraordinary�General� Meeting.�
-
To�vote�by�proxy,�please�complete�and�sign�the�enclosed�Proxy�Form�and�return�by:�
-
hand�delivery�to�the�Company’s�registered�office�at�Unit�1,�34�King’s�Park�Road,�West�Perth� 6005;�or�
-
post�addressed�to�Navigator�Resources�Limited,�PO�Box�276,�West�Perth�WA�6872;�or�
-
facsimile�at�+61�8�9226�5411;�or�
-
email�to�[email protected],�
so�that�it�is�received�not�later�than�2.00pm�(WST)�on�Tuesday,�28�July�2009.�