Novo Announces Non-Brokered Convertible Debenture Financing With Gold Redemption Right

About this update from Novo Resources Corp.

[{"type":"text","content":"Novo Announces Non-Brokered Convertible Debenture Financing With Gold Redemption Right(via Thenewswire.ca)\n\n \nVANCOUVER, BC, / TheNewswire / January 14, 2016 - Novo Resources Corp. (\"Novo\" or the \"Company\") (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it intends to undertake a non-brokered convertible debenture financing (the \"Debentures\") to raise approximately $2 million. The proceeds will be used to aggressively pursue the Company's trial mining plans at its Beatons Creek project in Western Australia. Each Debenture issued by the Company will have a principal amount of CAD $1,100 (approximately US $775). The Debentures will not bear interest and will mature on January 12, 2017. The Company may repay, in whole or in part, the Debentures at any time prior to the maturity date. Each Debenture is convertible into common shares of the Company at $0.67 per common share (the \"Equity Conversion Right\"). \n\n\n \nEach Debenture will also convey a gold redemption right (the \"Gold Redemption Right\") whereby the Company will have the right, prior to December 15, 2016, to give the Debenture holders notice that it intends to repay them with gold produced from the Company's Beatons Creek project at a redemption price of CAD $1,100 per ounce (a 30% discount on the current market price of gold in CAD $) of gold provided that the Company has produced at least 2,500 ounces of gold from its Beatons Creek project (the \"Threshold Production Amount\"). Permit applications for a 30,000 tonne trial mine were submitted to regulators on December 1, 2015, and approvals are expected by late first quarter, 2016 (please see the Company's news release dated December 17, 2015, for more details).\n\n\n \nIf the Company reaches or exceeds the Threshold Production Amount before December 15, 2016 but has not provided the Debenture holders with notice to exercise the Gold Redemption Right by January 2, 2017, the Debenture holders will have the right to give the Company notice of exercise of the Gold Redemption Right, the Equity Conversion Right, or that they require repayment of the Debenture principal in cash. \n\n\n \nIf the Company does not reach the Threshold Production Amount before December 15, 2016, the Debenture holders will have the right to exercise the Equity Conversion Right or require the repayment of the Debenture principal i...

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