Liatam Mining Makes Investment in Novo and Quartz Hill Joint Venture Formed
Liatam Mining Makes Investment in Novo and Quartz Hill Joint Venture Formed
HIGHLIGHTS
• Subject to Toronto Stock Exchange (TSX) approval, Liatam Mining Pty Ltd (Liatam) has agreed to further invest A$1.8
million to obtain 9,000,000 shares at A$0.20 per share in Novo to increase their shareholding from ~3% to ~6%.
• Liatam has exceeded the required spend of A$1.75 million to form the 80%/20% Quartz Hill Joint Venture with Novo in
the East Pilbara, Western Australia.
• Liatam has acquired legal title to the tenements included in the Quartz Hill Joint Venture and becomes the manager of
the joint venture, with Novo retaining 20% ownership of battery mineral rights along with 100% of the gold and silver
rights on the tenements.
• The Quartz Hill Joint Venture tenements are considered prospective for lithium-caesium-tantalum (LCT) style pegmatite
mineralisation.
• Following the A$10 million transaction with SQM Australia in the Harding Battery Metals JV in the West Pilbara, and
the investment made by Liatam, Novo is in a strong financial position to continue its aggressive exploration focus
across key gold targets in the Pilbara, Western Australia and Victoria in 2024.
VANCOUVER, British Columbia, Dec. 20, 2023 -- Novo Resources Corp. (Novo or the Company) (ASX: NVO) (TSX: NVO &
NVO.WT.A) (OTCQX: NSRPF) is pleased to announce an update to the Quartz Hill Project earn-in agreement with Liatam and
also an additional investment by Liatam in Novo of A$1.8 million.
Liatam has now exceeded the required spend of A$1.75 million at the Quartz Hill Project, pursuant to the earn-in agreement
announced by Novo on 15 December 20221. Quartz Hill is located in the Mosquito Creek Basin in the East Pilbara, Western
Australia. Following completion of the earn-in requirement, the 80%/20% Quartz Hill Joint Venture (JV) between Liatam and
Novo has now been formed.
Novo Executive Co-Chairman and Acting CEO Mike Spreadborough said,
“Novo is continuing its strategy to JV its prospective battery minerals tenements with battery minerals specialists. Novo is
pleased that Liatam has quickly exceeded its minimum exploration spend to form the JV and Liatam will continue its strategy
to explore for lithium bearing pegmatites at Quartz Hill. Liatam’s additional investment of $1.8 million in Novo also further
validates Novo’s continuing exploration strategy and helps boost Novo’s current cash reserves and exploration budget”.
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1 15 December 2022; Novo Announces Strategic Investment & Advancement of Battery Minerals Strategy. See also paragraph
9.6 of Novo’s ASX IPO prospectus dated 2 August 2023.
Quartz Hill Joint Venture (JV)
The 80%/20% JV between Liatam and Novo has been formed following completion of the earn-in requirement. Liatam will now
sole fund and free carry all of Novo’s required exploration costs in relation to the joint venture structure, until earlier of:
• Liatam having completed a Feasibility Study in respect of at least one deposit of Relevant Minerals; and
• Liatam having sole funded the exploration; capped of A$20m.
Following an initial 12-month period of exploration, Liatam made an offer of A$200k to acquire legal title to the tenements that
are the subject of the JV package, which was accepted by Novo. The transaction transfers the title of the tenements to Liatam
and they will be the manager of the JV. Novo has retained its 20% share of battery mineral rights as well as all gold and silver
rights on these tenements.
The Quartz Hill area is comprised of six granted Exploration Licenses, nineteen Prospecting Licences and one Exploration
Licence Application collectively covering approximately 770 sq km. The area is considered prospective for lithium–caesium–
tantalum (LCT) style pegmatite mineralisation2.
Novo Investment
In addition to the formation of the JV, Liatam has signed a subscription agreement and agreed to subscribe for an additional
A$1.8 million in Novo shares.
Subject to receipt of TSX approval, 9,000,000 shares will be issued to Liatam, based on a share value of A$0.20 per share,
increasing their shareholding from ~3% to ~6%. Liatam has a right to transmute the issued shares into ASX CDIs following a
four-month hold.
Following the A$10 million transaction with SQM Australia 3 and the investment committed by Liatam, Novo is well positioned
to continue to efficiently execute its gold exploration strategy throughout 2024.
The funds received will be utilised to advance Novo’s Pilbara exploration drilling and reconnaissance programs in the southern
Egina Gold Camp, the Balla Balla Gold project and at Belltopper Project in Victoria.
ABOUT NOVO
Novo explores and develops its prospective land package covering approximately 7,500 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 shareholders.
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2 23 February 2023; JV Partner Liatam Mining Outlines Lithium Exploration Program
3 18 December 2023; Strategic Joint Venture with Global Lithium Producer SQM
CONTACT
Investors:
Mike Spreadborough
+61 8 6400 6100
North American Queries:
Leo Karabelas
+1 416 543 3120
Media:
Cameron Gilenko
+61 466 984 953
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 (including within the meaning of Canadian securities
legislation) including, without limitation, the intended private placement with Liatam and intended use of proceeds therefrom.
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 TSX approval to the private placement, 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. 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.