Navigator Resources Ltd (ASX: NAV) said today it plans an in-specie distribution of shares to its shareholders for a new rare earths company - dubbed RECo - and for it to be listed on the Australian Securities Exchange. The objective will be to seek compliance listing on the ASX early next year following after achieving an initial cash reserve of more than A$10 million (US$9.85 million). Navigator said RECo would initially focus on the rare earths oxide deposit at Cummins Range in Western Australia's Kimberley region that is owned by Navigator. The proposal would be for this new float to have the right to earn 50% in Cummins Range by spending A$10 million on exploration. Navigator would retain a 10% stake in RECo with its shareholders expected to hold the majority of the balance. The company said it will remain in a trading halt pending a further announcement on funding activities for RECo. Navigator became a public company in 1994 and initially focused on exploration for gold and platinum group metals in the East Kimberley region and after trial mining early this year it re-commissioned the Bronzewing gold mine that had been gone through two ownerships after being mothballed a few years ago by Newmont Mining. Intierra Resource Intelligence said Bronzewing, which is 117 kilometres south east of Wiluna in the North Eastern Goldfields, had been achieving its annualised milling rate of 2 million tonnes. However, a recent pit wall was impacting on the targeted production which could erode 10% of targeted group production of 101,000 oz. After trial mining at Mertondale near Leonora in the Eastern Goldfields, Navigator began delivering ore to the St Barbara gold plant at Gwalia and Intierra said this mine was expected to ramp up to producing about 53,000 oz per annum.

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