Strategic Joint Venture With Global Lithium Producer SQM
18 Dezember 2023 - 3:53PM
Novo Resources Corp. (
Novo or the
Company) (ASX: NVO) (TSX: NVO & NVO.WT.A)
(OTCQX: NSRPF) is pleased to announce that (though its Australian
subsidiaries) it has entered into a tenement sale agreement, joint
venture agreement, and coordination agreement with SQM Australia
Pty Ltd (SQM), a wholly owned subsidiary of Sociedad Química y
Minera de Chile S.A., in relation to five of Novo’s prospective
lithium and nickel exploration tenements (Priority Tenements) in
the West Pilbara (Harding Battery Metals JV, HBMJV). The joint
venture name reflects the importance of the Harding River to the
West Pilbara region.
SQM will pay Novo A$10 million for a 75%
interest in the Priority Tenements, and for an option over
additional Novo Pilbara exploration tenements, with Novo to retain
25% interest, along with 100% ownership of the gold, silver, PGE,
copper, lead and zinc mineral rights. Novo will continue to explore
for these minerals across these tenements. Novo’s 25% interest will
be free carried by SQM until a decision to mine is made by the
HBMJV participants.
Novo will also be entitled to a contingent
success payment based on the lithium contained in a JORC compliant
ore reserve upon completion of a feasibility study.
The HBMJV with SQM is a significant milestone
for Novo, providing leverage to battery metals discoveries across a
package of tenements adjacent to or in the vicinity of Azure
Minerals’ Andover Lithium - Nickel Project and Artemis Resources’
Carlow Castle Gold – Copper – Cobalt Project.
Harding Battery Metals Joint Venture
(HBMJV) Details
Novo and SQM have entered into a joint venture agreement
relating to Novo’s West Pilbara battery metals portfolio where SQM
will be the manager HBMJV.
Key transaction details of the joint
venture include
- SQM will obtain a 75% interest in
the Priority Tenements (refer Appendix), and the option referred to
below, upon payment of A$10 million, following which the parties
will form an unincorporated joint venture in respect of their
respective 75% and 25% interests.
- SQM will have a 12-month option to
acquire a 75% interest in additional Novo West Pilbara tenements
(Option Tenements) (refer Appendix). Any tenements over which the
option is exercised will be held by the HBMJV in the same
proportions as the existing HBMJV tenements (75% SQM and 25%
Novo).
Price and structure terms
- SQM will acquire a 75% interest in
the Priority Tenements for a purchase price comprising of the
following payments.
- A$10,000,000 upfront payment.
- A contingent success payment
calculated on the tonnes of lithium contained in a JORC compliant
ore reserve on which a feasibility study is based.
Additional key terms of the
Joint-Venture
- Novo will be free carried by SQM
until a decision to mine has been approved by the HBMJV.
- Novo will retain 100% of the gold,
silver, PGE, copper, lead and zinc mineral rights and will continue
to explore for these minerals across these tenements.
- If SQM exercises the option to
acquire an interest in any of the Option Tenements, then SQM must
reimburse Novo for reasonable costs incurred by Novo to keep the
relevant tenements in good standing during the option period.
- Each party will have a pre-emptive
right in respect of any disposal of the other party's interest in
the HBMJV.
Figure 1: Harding Battery Metals JV Priority
Tenements
Figure 2: Location of Priority Tenement adjacent
to Azure Minerals’ Andover Lithium – Nickel Project2
ABOUT NOVO
Novo explores and develops its prospective land
package covering approximately 9,000 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.
Authorised for release by the Board of
Directors.
CONTACT
Investors:Mike Spreadborough +61 8 6400 6100
info@novoresources.com |
North American Queries:Leo Karabelas+1 416 543
3120leo@novoresources.com |
Media:Cameron Gilenko+61 466 984
953cgilenko@citadelmagnus.com |
|
FORWARD-LOOKING INFORMATION
Some statements in this news release contain
forward-looking information (including within the meaning of
Canadian securities legislation) including, without limitation,
that the SQM JV described in this news release will expand Novo’s
exposure to lithium exploration. 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, 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.sedarplus.ca and at www.asx.com.au. 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.
Priority Tenements
Tenement |
Holder |
E47/4703 (application only) |
Meentheena Gold Pty Ltd |
E47/1745 |
Karratha Gold Pty Ltd |
E47/3677 |
Grant’s Hill Gold Pty |
E45/3675 |
Whim Creek Pty Ltd – beneficially owned by and in process of
transfer to Nullagine Gold Pty Ltd |
E47/3608 |
Grant’s Hill Gold Pty Ltd |
Option Tenements
Tenement |
Holder |
E47/3443 |
Karratha Gold Pty Ltd |
P47/1845 |
Grant’s Hill Gold Pty Ltd |
P47/1846 |
Grant’s Hill Gold Pty Ltd |
P47/1847 |
Grant’s Hill Gold Pty Ltd |
E47/3700 |
Grant’s Hill Gold Pty Ltd |
E47/3713 |
Grant’s Hill Gold Pty Ltd |
E47/4090 (application only) |
Karratha Gold Pty Ltd |
E47/4091 |
Karratha Gold Pty Ltd |
E47/4092 (application only) |
Karratha Gold Pty Ltd |
E47/4116 |
Rocklea Gold Pty Ltd |
E47/3659 |
Grant’s Hill Gold Pty Ltd |
E47/3660 |
Grant’s Hill Gold Pty Ltd |
E45/3724 |
Whim Creek Pty Ltd – beneficially owned by and in process of
transfer to Nullagine Gold Pty Ltd |
E45/3952 |
Witx Pty Ltd– beneficially owned by and in process of transfer to
Nullagine Gold Pty Ltd |
E45/5282 |
Meentheena Gold Pty Ltd |
E45/4921 |
Bamboozler Pty Ltd |
E45/5281 (application only) |
Meentheena Gold Pty Ltd |
E45/5868 |
Grant’s Hill Gold Pty Ltd |
E45/5329 (application only) |
Grant’s Hill Gold Pty Ltd |
E47/3701 |
Grant’s Hill Gold Pty Ltd |
E47/4041 |
Karratha Gold Pty Ltd |
E47/4012 |
Karratha Gold Pty Ltd |
E47/3779 |
Meentheena Gold Pty Ltd |
E47/3818 |
Meentheena Gold Pty Ltd |
E47/3826 |
Karratha Gold Pty Ltd |
E47/4353 (application only) |
Meentheena Gold Pty Ltd |
E47/4347 |
Grant’s Hill Gold Pty Ltd |
E47/3622 |
Grant’s Hill Gold Pty Ltd |
E47/3778 |
Meentheena Gold Pty Ltd |
E47/3611 |
Grant’s Hill Gold Pty Ltd |
E47/3817 |
Meentheena Gold Pty Ltd |
E47/3615 |
Grant’s Hill Gold Pty Ltd |
E47/3821 |
Meentheena Gold Pty ltd |
E47/3822 |
Meentheena Gold Pty Ltd |
__________________________1 Refer to Azure Minerals
Limited ASX announcement dated 10 October 2023. Results referred to
in Azure Minerals’ news release are not necessarily representative
of mineralisation on Novo’s tenements in the West Pilbara, near
Roebourne, Western Australia.
2 No assurance can be given that a similar or any commercially
mineable deposit will be determined on Novo’s adjacent
tenements.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/17cd2a80-c4e1-4764-b332-67df72927e7fhttps://www.globenewswire.com/NewsRoom/AttachmentNg/b9f7c76f-014a-42e9-aa32-9f492bd3bf9b
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