The shareholders of Navan Resources have voted unanimously in favour of a $30 million (£20.1 million) cash investment in the company by Homestake Mining.

The investment is being made in Navan's Chelopech mine in Bulgaria and will give Homestake a 51 per cent interest in the mine and the right to manage its operations.

Navan's Bulgarian subsidiary, Navan BV, will be the recipient of the investment.

The funds will be used primarily to expand mining and mineral processing capacity at Chelopech to around 160,000 ounces of gold and 40 million pounds of copper.

The two companies do not expect the investment to be completed until approximately the summer of 2001.

If Homestake decides to participate in other exploration projects in Bulgaria, it will have to pay Navan a further $4 million to acquire a 32 per cent interest in a new exploration subsidiary, which will hold those exploration interests. The agreement is based on an earlier Homestake option agreement, entered into in 1995.

Meanwhile, Navan has reported pre-tax losses of $2.2 million for the six months to June 30th, 1997, according to figures released yesterday. This compares with a profit of $66,000 in the same period in 1996.

Navan Resources had a turnover of $20.1 million for the half year compared to $12.8 million in the same period last year.

The company's profit and loss account shows exceptional charges of $1 million against unsold pyrite stocks in Bulgaria and $500,000 of restructuring costs associated with the Almagrera acquisition in Spain.

A company statement said Navan's exploration licences in Spain and Bulgaria would yield further additions to group mining activities in the "near term".