Navan Resources and Homestake Mining have revised their joint venture agreement for their operations in Bulgaria.

Under the new agreement, when Homestake completes its investment, it will earn a 51 per cent interest in the Chelopech mine and the right to manage operations. Subject to the terms of the agreement, Homestake will make a cash investment of $30 million (£20.1 million) in the Chelopech project and will provide a $10 million standby loan.

The agreement is based on an earlier Homestake option agreement, entered into in 1995 and is subject to the approval of Navan shareholders. 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.