Navan Resources and Homestake Mining Company have agreed to expand the Chelopech gold/copper mine and mill in Bulgaria and to jointly explore and develop Navan's exploration properties in the area. Homestake will make a direct investment of $30 million, will provide a $10 million contingent standby loan facility for the Chelopech operation and will inject $8 million into a new joint exploration venture. Navan has a 68 per cent shareholding in Chelopech and the latest agreement will allow Homestake to ultimately earn up to a 51 per cent stake in and have the right to become manager of the Chelopech operation.

The latest agreement provides for Homestake to earn up to a 50 per cent joint venture interest in Navan's existing Bulgarian exploration properties where Navan said it has already established a number of "promising gold exploration targets, with one identified gold bearing zone extending over 8,000 metres in strike length". Navan's pre-tax profit fell from $5.7 million to $996,000 last year due to a sharp fall in the price of copper and stagnant gold prices. The average price Navan received for copper fell from $2,923 in 1995 to $2,218 in 1996.