NAVAN Resources is paying a total of 58.7 million (£5.4 million) for a Spanish mine which is being sold off by the government there as part of its privatisation programme. Navan is paying 53.43 million and taking on 55.3 million debt of Minas de Almagrera, which has reserves and a processing complex 20 kilometres from Navan's existing Aguas Tenidas orebody.

Almagrera holds two orebodies, one containing 49.5 million tonnes and a higher-grade lead-zinc orebody of 6.4 million tonnes. Navan's Aguas Tenidas orebody has 9.4 million tonnes of copper and 11.4 million tonnes of zinc, lead and copper.

Half of the 53.4 million cash payment will be paid when the takeover agreement is signed, with the other half being payable after the auditing of Almagrera's balance sheet. Almagrera had a loss of 54.6 million on sales of 534 million in 1995 and the 1996 results are expected to be worse because of the recent fall in copper prices.