Novo Completes First Tranche of New Found Gold Sale for C$68.9 Million
28 April 2022 - 12:00AM
Novo Resources Corp. (
“Novo” or
the
“Company”) (TSX: NVO, NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to advise that it has closed the first
tranche of its previously announced sale of 15 million shares (the
“
Transaction”) of New Found Gold Corp.
(“
New Found”). A total of 8.25 million New Found
shares have been transferred to a corporation controlled by Eric
Sprott at C$8.35 per share for gross proceeds of approximately
C$68.9 million1.
The second tranche of the Transaction,
consisting of 6.75 million New Found shares at C$8.45 per share for
gross proceeds of approximately C$57.0 million, is scheduled to
close on August 5, 2022 (“Tranche 2”). The New
Found shares representing Tranche 2 are subject to escrow
provisions. The consent of the TSX Venture Exchange, on which New
Found’s common shares trade, to the transfer of the Tranche 2
shares within escrow has been obtained.
Novo’s cash position is currently approximately
C$91 million. Net funding from the Transaction will be used to
provide 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
Australia2.
ABOUT NOVO
Novo operates its flagship Beatons Creek project
while exploring and developing its prospective land package
covering approximately 12,500 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.
“Michael Spreadborough”
Michael Spreadborough
Executive Co-Chairman and Acting CEO
Forward-looking information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, that Tranche
2 will settle on August 5, 2022, and that funding generated from
the Transaction will provide 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. These 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. Such factors include, without limitation, the
completion by the parties of their respective obligations under
Tranche 2, customary risks of the resource industry, and the risk
factors identified in Novo’s management’s discussion and analysis
for the year ended December 31, 2021 which is available under
Novo’s profile on SEDAR at www.sedar.com. Forward-looking
statements speak only as of the date those statements are made.
Except as required by applicable law, Novo assumes no obligation to
update or to publicly announce the results of any change to any
forward-looking statement contained or incorporated by reference
herein to reflect actual results, future events or developments,
changes in assumptions or changes in other factors affecting the
forward-looking statements. If Novo updates any forward-looking
statement(s), no inference should be drawn that the Company will
make additional updates with respect to those or other
forward-looking statements.
1 Refer to the Company’s news release dated
April 12, 2022.2 Refer to the Company’s news
release dated April 7, 2022.
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