Business
Novo Resources: De Grey to Invest A$25 Million to Earn 50% in Egina JV and Complete A$10 Million Cornerstone Investment
HIGHLIGHTS Major Western Australian gold developer De Grey Mining Ltd (ASX: DEG) (“De Grey”) to spend up to A$25 million on exploration of Novo’s Becher Gold Pr
About this update from Novo Resources Corp.
[{"type":"text","content":" HIGHLIGHTS Major Western Australian gold developer De Grey Mining Ltd (ASX: DEG) (“De Grey”) to spend up to A$25 million on exploration of Novo’s Becher Gold Project (“Becher”) and adjacent tenements, encompassing approximately 1,000 sq. km, through an earn-in and joint venture (“Egina JV”) under a binding Heads of Agreement (the “Agreement”). De Grey will earn a 50% direct stake in the relevant tenements by spending A$25 million on exploration within four years, with a minimum commitment of A$7 million within 18 months, at which time the 50/50 Egina JV will be established. De Grey will manage all exploration under the earn-in and become the manager of the Egina JV once established. Novo’s flagship Becher tenements are adjacent to De Grey’s 11.7 Moz Au (JORC 2012)1 Mallina Gold Project on which De Grey expects to release a Definitive Feasibility Study in Q3 2023. Novo’s exploration program to date has confirmed that Becher has the geological indicators of potential discovery success. De Grey has separately agreed to take a cornerstone investment of A$10 million in Novo common shares for an approximate 11.6% post-financing undiluted interest in Novo and will become the Company’s largest single shareholder. The cornerstone investment underpins Novo’s exciting exploration portfolio and growth strategy. The cornerstone private placement to De Grey will be completed at Novo's current spot price of C$0.255 per common share. De Grey has also been granted a financing participation right and board nomination right and will be subject to extended contractual hold period and orderly sale restrictions subsequent to expiry of such hold period. Novo has commenced a process to seek a dual listing on the Australian Securities Exchange (“ASX”) through an initial public offering (“IPO”), with further updates to follow. Argonaut has been appointed lead manager to the IPO. A listing on the ASX would complement Novo’s current TSX and OTCQX listings and is a logical next step given the location of Novo’s assets. Novo will commence a strategic review of the Nullagine Gold Project to assess value maximising options for shareholders. The exploration success at Becher is testament to the credentials of Novo’s experienced management and exploration team that will continue to focus on opportunities for major gold discoveries. Novo will continue to focus o...