Native Mineral Resources Refinances Collins Street Facility With $18M Loan
Key Takeaways
- NMR has removed about $11.56 million of Collins Street repayments due between October 2026 and September 2027 by drawing an $18 million loan maturing October 2028.
- The deal does not reduce total financing liabilities; it shifts timing, with principal repayable at the end of the 24-month term.
- Of the $18 million, $2,999,193.79 went to prepaid interest and funding costs, leaving $2,687,354.32 available after the $12,313,451.89 Collins Street repayment.
- The lender is Yogi Bear Holdings, associated with Managing Director Blake Cannavo, with interest of 11.88% to 23.76% variable plus a $18,000 monthly management fee.
- If the ASX waiver or shareholder approvals aren't secured by 31 March 2027, Yogi Bear can require repayment on three months' notice, and a share-based compensation package with undisclosed size and price is pending.
$18 million refinancing clears Collins Street facility
Native Mineral Resources (ASX: NMR) has completed an $18 million refinancing that fully repays its Collins Street facility over the Charters Towers assets. The loan comes from Yogi Bear Holdings Pty Ltd, an entity associated with NMR Managing Director Blake Cannavo, and the company announced it on 12 October 2026.
The NMR refinancing matters because it changes when the company pays, not how much it owes. Here is what the announcement set out:
- ~$11.56 million of scheduled Collins Street repayments, due between October 2026 and September 2027, have been removed.
- $12,313,451.89 was repaid to Collins Street on 9 October 2026.
- $2,687,354.32 remains available for further debt retirement and general business purposes.
- Collins Street has agreed to discharge its security.
The new loan has a 24-month term, with scheduled maturity in October 2028, subject to early repayment provisions.
James Walker, NMR Chair
“By removing near-term repayment pressures and improving liquidity, we have created the flexibility needed to focus on operational performance, margin improvement and disciplined capital allocation.”
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How the $18 million was allocated
Of the $18,000,000 gross advance, $2,999,193.79 went to prepaid interest and funding costs. The table below shows where the money went.
| Item | Amount | Purpose | Note |
|---|---|---|---|
| Collins Street repayment | $12,313,451.89 | Repay Collins Street facility | Paid 9 October 2026 |
| Prepaid interest and funding costs | $2,999,193.79 | External interest and funding costs borne by NMR | Deducted from the advance |
| Remaining funds | $2,687,354.32 | Further debt retirement and general business purposes | Available to NMR |
| Gross advance | $18,000,000 | Total loan from Yogi Bear | Advanced 9 October 2026 |
The funding costs break down as follows:
- Lender fee: $651,862
- Brokerage: $158,400
- Legal fees and disbursements: $45,000
- NSW land registration and PEXA charges: $5,531.79
Those four items total $860,793.79. Separately, $2,138,400 covers the first 12 interest instalments.
Prepaying the first 12 months of base interest eases near-term cash servicing. The $15,000,806.21 payable to Yogi Bear is the advance less these deductions, and it is a different figure from the Collins Street repayment.
Where operating cash flow will be directed
NMR expects the refinancing to let it retain a greater proportion of operating cash receipts from gold production and smelting. The company intends to prioritise that cash towards five areas:
- Production continuity and growth
- Operating cost reduction
- Processing efficiency
- Working capital management
- Mine development
These priorities tie into the continued ramp-up of the Blackjack Processing Facility, where consistent feed supply is a stated aim.
Blackjack’s quarterly gold output rose about 84% to roughly 2,331oz in Q3 CY26, but a September grade slump shows why feed consistency remains the central operating test behind the cash priorities set out above.
Blake Cannavo, Managing Director & CEO
“Our focus for the December quarter is straightforward – maintain strong plant performance, improve the consistency of feed and convert that performance into higher and more consistent gold output.”
Understanding refinancing and why it matters to investors
Refinancing means replacing one loan with another to change the timing and terms of repayments. The amount owed can stay the same while the schedule shifts.
That is the case here. Principal on the new loan is repayable at the end of the term, which frees cash that would otherwise have gone to scheduled Collins Street repayments.
The company is clear that the deal “does not represent a direct reduction in the Company’s total financing liabilities”. It improves the timing of scheduled repayment commitments, which you should weigh differently from genuine debt reduction.
Key loan terms and conditions to note
The loan is with a related party and carries conditions. These are the points to watch.
Principal terms
| Term | Details |
|---|---|
| Interest rates | Initial lower rate of 11.88% p.a. and higher rate of 23.76% p.a., both variable |
| Management fee | 0.10% of principal per month ($18,000) |
| Principal repayment | Repayable at the end of the term |
Security and ASX waiver
The loan is initially unsecured. The proposed security is intended to cover the same assets as the Collins Street security, including 17 granted Mining Leases, one Mineral Development License, six Exploration Permits, and the Black Jack processing plant.
Granting the security is conditional on either an ASX waiver of Listing Rule 10.1 or shareholder approval under that rule. The waiver has not been granted and there is no assurance it will be. NMR intends to resolve the applicable pathway by no later than 31 March 2027.
Risk compensation
NMR has agreed, subject to conditions, to compensate Yogi Bear for its asset exposure and other financial risks. The proposed compensation is intended to be satisfied by issuing fully paid ordinary shares, subject to shareholder approval under Listing Rule 10.11 and an independent expert’s assessment, which has not yet been obtained.
The share number and issue price have not been disclosed. If the shares are not approved or cannot lawfully be issued by 31 March 2027, a binding cash fallback is payable on or before 7 April 2027.
Conditional early repayment right
If the approvals are not achieved by 31 March 2027, Yogi Bear may require repayment on at least three months’ written notice. That right can shorten the 24-month term.
Repaying Collins Street also does not end NMR’s obligation under the Royalty Agreement dated 16 June 2025 to pay a 2% royalty (if paid on time) on all products produced from minerals processed through the Blackjack Processing Facility.
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Independent oversight and next steps
The independent Directors, James Walker and Philip Gardner, considered the transaction, and Mr Cannavo did not participate in deliberations or vote. They relied on the exception in section 210 of the Corporations Act.
Their assessment did not rely on specific competing funding proposals, a formal benchmarking exercise or an external opinion on whether the overall transaction was on arm’s-length terms. That is worth noting when you assess a related-party deal.
NMR will update the market on:
- The outcome of the ASX waiver application
- Execution of the new security documents
- The proposed shareholder meeting, expected in late 2026 or early 2027
The company expects trading to resume following the announcement, subject to ASX’s confirmation.
Management describes the new structure as a more stable platform for sustained production and improved margins. Whether that holds depends on the approvals and on gold output at Blackjack.
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