Novo Closes Cornerstone Investment With De Grey Mining
28 Juni 2023 - 11:22PM
Novo Resources Corp. (
“Novo” or
the
“Company”) (TSX: NVO, NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to advise that the previously announced
Financing with De Grey1 has now closed following Toronto Stock
Exchange acceptance of notice of the Financing and conditional
approval of the listing of the Shares issued under the Financing.
Gross proceeds of approximately C$8.97 million / A$10 million were
raised through the issue of 35,223,670 Shares. The Financing was
conducted at a price of approximately C$0.255, and De Grey now
holds an undiluted 11.6% position in Novo.
Argonaut PCF Limited
(“Argonaut”) of Perth, Western Australia received
a cash finder’s fee of A$0.5 million (approximately C$0.45 million)
in connection with the Financing.
The Shares issued in the Financing are subject
to a statutory hold period expiring on October 29, 2023, along with
an additional voluntary contractual hold period (the
“Contractual Hold Period”) expiring on June 28,
2024. However, if the Company has not received a formal listing
decision letter for its proposed dual listing on the Australian
Securities Exchange (“ASX”)1 by December 28 2023,
the Contractual Hold Period will expire on December 28, 2023. The
Shares will be subject to orderly sale restrictions subsequent to
the expiry of the Contractual Hold Period.
Commencing on December 28, 2023 and subject to
De Grey maintaining at least a 12.5% undiluted interest in Novo at
all times (the “Nomination Threshold”), De Grey
has a one-time right to nominate a director to Novo’s board.
However, if Novo has not received a formal listing decision letter
from the ASX regarding its proposed dual listing by December 28,
2023, the Nomination Threshold will decrease to 10%. De Grey also
has the right to participate in any raising conducted in
conjunction with the ASX listing such that it holds up to a maximum
undiluted post-financing interest of 12.5% of Novo.
The net proceeds from the Financing will
primarily be used by Novo to fast-track exploration at the
Company’s key projects, including Nunyerry North, Balla Balla and
Belltopper, as well as for general working capital purposes.
There is no guarantee that the Company will list
on the ASX or will be granted approval to do so.
ABOUT NOVO
Novo explores and develops its prospective land
package covering approximately 10,500 square kilometres in the
Pilbara region of Western Australia, along with the 22 square
kilometre Belltopper Project in the Bendigo Tectonic Zone of
Victoria, Australia. In addition to the Company’s primary focus,
Novo seeks to leverage its internal geological expertise to deliver
value-accretive opportunities to its stakeholders. For more
information, please contact Michael Spreadborough at
+61-419-329-687 or mike.spreadborough@novoresources.com, or Leo
Karabelas at +1-416-543-3120 or leo@novoresources.com.
On Behalf of the Board of Directors,
Novo Resources Corp.“Michael
Spreadborough”Michael SpreadboroughExecutive 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, the use of
the net proceeds from the Financing and the intention to undertake
an IPO on the ASX. 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, receipt
of ASX approval to the dual listing of Novo, customary risks of the
resource industry and the risk factors identified in Novo’s annual
information form for the year ended December 31, 2022, 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 21 June 2023.
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