TSXV:NVO

Novo Sells Part of Blue Spec Project to Calidus Resources for Cash Consideration of A$19.5 Million

Novo Resources Corp. (" Novo " or the " Company ") (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has signed a binding terms sheet (the " Terms Sheet ") with ASX-listed Calidus Resources Limited (" Calidus ") to sell a portion of the Company's Blue Spec project for gross cash consideration of A$19.5 million (approximately C$18.6 million) (the " Cash Consideration ") (the " Transaction ").

The Transaction is subject to the satisfaction of certain conditions precedent including Calidus arranging sufficient financing to pay the Cash Consideration, the execution of various deeds of assignment between the Company, Calidus, and relevant third parties along with customary regulatory approvals for transactions of this nature.

Calidus will pay an A$200,000 deposit to the Company within two business days which is non-refundable should the Transaction not complete. The remaining A$19.3 million Cash Consideration is due by November 30, 2020.

The Company purchased the Blue Spec project in August 2015 for gross cash and equity consideration of approximately C$674,000. While the Blue Spec project is part of the Nullagine gold district, its lode Au-Sb mineralization is not compatible with the recently acquired Nullagine mill ( please see the Company's news releases dated August 4 and September 9, 2020 ). Calidus plans to build a mill circuit that is better suited for this style of mineralization as part of their Warrawoona mining operation. Also, Calidus has plans to implement underground mining at Warrawoona, a synergy that can benefit development of Blue Spec, whereas Novo has no current plans to undertake underground mining in the region. Novo plans to use proceeds from the sale of Blue Spec to aggressively advance expansion of its Beatons Creek deposit as well as explore other near surface targets it holds across the region.

"Both Novo and Calidus see strong benefits to this transaction," commented Quinton Hennigh, Chairman and President of Novo. "Calidus plans to develop a sulfide circuit at Warrawoona that is capable of treating Blue Spec style mineralization and also have plans to develop underground operations that can complement development of the Blue Spec project. With its recent acquisition of Millennium Minerals, Novo is moving its Beatons Creek project toward production. Cash from this sale will allow Novo to aggressively pursue exploration at Beatons Creek as well as test the Company's numerous other near-surface gold targets in the region, part of Novo's vision for growth in the Nullagine camp."

About Novo Resources Corp.

Novo is advancing its flagship Beatons Creek gold project to production while exploring and developing its highly prospective land package covering approximately 14,000 square kilometres in the Pilbara region of Western Australia. In addition to the Company's primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

"Quinton Hennigh"
Quinton Hennigh
President and Chairman

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the satisfaction of certain conditions precedent to the Transaction. Forward-looking statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.

Primary Logo

News Provided by GlobeNewswire via QuoteMedia

The Conversation (0)
Advancing Multiple Gold Discoveries in Proven Jurisdictions

Advancing Multiple Gold Discoveries in Proven Jurisdictions

Focused on adding value through cost effective minerals exploration and discovery

This Presentation has been prepared as a summary only and does not contain all information about Many Peaks Minerals Limited’s (“MPK” or the “Company”) assets and liabilities, financial position and performance, profits and losses, prospects and rights and liabilities. The information in this Presentation and made to you verbally is subject to updating, completion, revision, further verification and amendment without notice.
Keep reading...Show less
Siren Gold

Significant Mineralisation Intersected at Auld Creek

Siren Gold Limited (ASX: SNG) (Siren or the Company) is pleased to provide an update on its Auld Creek Prospect.
Keep reading...Show less
Flynn Gold

Polymetallic Strike and Depth Potential Identified at Firetower Project

Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to provide an update on its exploration activities at its 100%-owned Firetower Project located in northwest Tasmania.

Keep reading...Show less
Acquisition of Advanced Gold Projects in Cote D’Ivoire

Acquisition of Advanced Gold Projects in Cote D’Ivoire

Many Peaks Minerals Limited (ASX:MPK) (Many Peaks or the Company) is pleased to announce entering a binding Share Sale Agreement (Agreement) with Turaco Gold Limited (Turaco) to acquire its 89% interest in CDI Holdings (Guernsey) Ltd (CDI Holdings). CDI Holdings is an 89% subsidiary of Turaco, held with Predictive Discovery Limited (Predictive), holding an 11% free carry ownership in a joint venture with Turaco. The Agreement will trigger Turaco’s drag-along right in its joint venture with Predictive, whereby Many Peaks will also acquire Predictive’s remaining 11% interest and consolidate 100% ownership of the joint venture entity CDI Holdings.

Keep reading...Show less
Mining cart full of gold.

Barrick to Look for More Gold and Copper Through DRC Partnership

Barrick Gold (TSX:ABX,NYSE:GOLD) is setting its sights on expanding its operations through a partnership with the Democratic Republic of Congo (DRC) that would open up new gold and copper opportunities for the company.

Kibali — the company’s joint venture with AngloGold Ashanti (NYSE:AU,JSE:ANG) — continues to set production records after another successful year, punctuated by the 343,000 ounces of gold it produced in 2023.

Barrick is forecasting higher attributable production from Kibali in 2024, setting a goal of 320,000 to 360,000 ounces.

Keep reading...Show less

AGNICO EAGLE PROVIDES NOTICE OF RELEASE OF FIRST QUARTER 2024 RESULTS, CONFERENCE CALL AND ANNUAL MEETING

Stock Symbol: AEM (NYSE and TSX)

Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today announced that it will release its first quarter 2024 results on Thursday, April 25, 2024 after normal trading hours. Additionally, the Company will host its Annual and Special Meeting of Shareholders (the "AGM") the following day, Friday, April 26, 2024 in a hybrid format (in Toronto and virtually).

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×