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Novo Resources Agrees to Sell Stake in New Found Gold for C$125.9 Million
KEY POINTS Novo has agreed to sell its stake of 15 million shares in New Found Gold Corp. (TSXV: NFG) (“New Found”) to a corporation controlled by Eric Sprott f
About this update from Novo Resources Corp.
[{"type":"text","content":" KEY POINTS Novo has agreed to sell its stake of 15 million shares in New Found Gold Corp. (TSXV: NFG) (“New Found”) to a corporation controlled by Eric Sprott for gross proceeds of C$125.9 million pursuant to arm’s length negotiations (the “Transaction”) representing an aggregate 9.3% premium to market Completion of the Transaction will leave Novo debt-free and with a pro-forma cash balance of almost C$97 million1, with funds providing Novo with the flexibility to aggressively advance exploration efforts across the Pilbara and Victoria, while expediting a Feasibility Study on the Fresh component of the Company’s Beatons Creek project in Nullagine, Western Australia VANCOUVER, British Columbia, April 12, 2022 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO, NVO.WT & NVO.WT.A) (OTCQX: NSRPF) is pleased to announce that it has agreed to sell its 15 million New Found shares to a corporation controlled by Eric Sprott for gross proceeds of approximately C$125.9 million pursuant to arm’s length negotiations and at a significant premium of 9.3% to New Found’s closing price of C$7.68 as of April 11, 2022. “Novo has always considered its sizeable investment portfolio as a means to fund growth expenditure” commented Mr. Mike Spreadborough, Executive Co-Chairman of Novo. “The sale of our New Found holding at a premium of 9.3% to the closing price of C$7.68 is an excellent result and allows Novo to deleverage our balance sheet, continue to focus on optimizing operations at Beatons Creek and aggressively accelerate growth and expansion plans across Western Australia and Victoria. We would also like to thank Sprott Lending for their support since our transition to operations in late 2020.” The first tranche of the Transaction totals 8.25 million New Found shares at C$8.35 per share for gross proceeds of C$68.9 million and is scheduled to complete on April 27, 2022 (“Tranche 1”). Tranche 1 is not subject to any regulatory approvals. The price per share payable under Tranche 1 represents an 8.7% premium to New Found’s most recent closing price and a 10.1% premium to New Found’s 10-day volume-weighted average price (“VWAP”). The second tranche of the Transaction totals 6.75 million New Found shares at C$8.45 per share for gross proceeds of C$57.0 million and is scheduled to settle on August 5, 2022 (“Tranche...