VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/24/13 -- Nava Resources, Inc. (OTCQB: NAVA) ("Nava" of the "Company") is pleased to announce that it has entered into agreements to acquire Quivira Gold Ltd. ("Quivira") and International Eco Endeavors Corp. ("Eco Endeavors"). These acquisitions are the first step in the Company's plan to change into a mining and mining services company.
On closing of the acquisitions Nava will have acquired prospective mining properties, including gold and diamond properties, on the Kibi Greenstone Belt in the Eastern Region of Ghana, being the Pramkese, Osenase and Asamankese prospecting licenses, a production royalty on the Grumesa-Awisam concession in Ghana, 7% equity in a future joint venture for the purpose of conducting mining operations on the Kwatechi concession in Ghana, the assignment of a significant loan, and an operating biogas plant feeding electricity to the grid. The acquisitions are the first step in Nava's business plan to focus and expand on its mining business, while also introducing the concept of green mining to its operations by way of offsetting carbon emissions through the expansion of the renewable energy business of Eco Endeavours. These acquisitions will be managed by the use of the Enterprise Resource Planning (ERP) software acquired through Quivira. The full details of these acquisitions are shown below.
"We are excited about these acquisitions, and are confident that we have added considerably to the fundamental value of the Company. In addition to the acquisitions, we are in the process of changing the company's name to Blox Inc. to better reflect the style and nature of our business going forward" said Jag Sandhu, the Nava's President and CEO. "Furthermore, upon closing of the proposed amalgamation with Eco Endeavors, Mr. Robert Abenante will be joining the Nava's board of directors, bringing additional strength and depth of experience to the management team."
PROPOSED PURCHASE OF QUIVIRA.
On June 22, 2013, Nava entered into a share purchase agreement with Quivira and its shareholder pursuant to which Nava will pay US$3,000,000 to acquire all of the issued and outstanding shares of Quivira. Nava will issue 60,000,000 shares of Nava common stock valued at $0.05 per common share and 60,000,000 Nava share purchase warrants exercisable for an additional share at a price of $0.05 per share for five years from the closing date.
The closing of the Share Purchase Agreement is subject to various conditions precedent customary for a share purchase transaction of this nature, including completion of legal, financial and technical due diligence and Nava's Board approval. In addition, closing is subject to The Company receiving legal opinions of Ghana counsel confirming various matters relating to the laws of Ghana including corporate and title opinions; completion of certain ongoing transactions by Quivira relating to transfer of title to some of the assets and assignment of the debt; and preparation of US GAAP consolidated financial statements for Quivira.
The prospecting licenses and concessions are subject to a 3% net smelter royalty and a royalty of 3% of gross sales of non-smelted minerals payable to a Company incorporated in Ghana.
Quivira Gold is a company incorporated under the laws of Ghana that will on closing own 90% of the following assets:
-- three Ghana prospecting licenses covering the Osenase, Pramkese and Asamankese prospects located on the Kibi Greenstone Belt in the Eastern Region of Ghana-- a 0.5% production royalty held by Leo Shield Ghana Exploration Ltd. ("Leo Shield") on the Grumesa-Awisam concession in Ghana being operated by a subsidiary of a publicly listed company on the Australian Stock Exchange ("ASX") and the Toronto Stock Exchange ("TSX"), who is in the process of applying for a mining license on the concession;-- the right of Leo Shield to retain a 7.0% equity interest in a joint venture company to be formed with Ghanaian companies Sun Gold Resources Limited ("Sun Gold") and Tropical Exploration and Mining Company Limited ("TEMCO"), a Ghanaian company, for the purpose of conducting mining operations on the Kwatechi concession. Sun Gold is currently the operator with the right to earn-in to a 76% JV interest, with TEMCO retaining a 7% interest and the government of Ghana holding a 10% interest;-- an assignment of a debt receivable from an exploration subsidiary of a public company in Australia, in the amount of US$11,091,588.12; and-- all of the issued and outstanding capital stock of Strategic Marketing Australia Pty. Ltd., an Australian company that holds an ERP software system suitable for capital intensive operations, project management and entrepreneurial activities.