Novo Announces Strategic Investment & Advancement of Battery Minerals Strategy
Suite 1100, 1199 West Hastings Street
Vancouver, BC, Canada V6E 3T5
P: +1-416-543-3120 E: [email protected] www.novoresources.com
DECEMBER 15, 2022
NOVO ANNOUNCES STRATEGIC INVESTMENT
& ADVANCEMENT OF BATTERY MINERALS STRATEGY
Not for distribution to United States Newswire Services or for dissemination in the United States
HIGHLIGHTS
• Liatam Mining Pty Ltd (“Liatam”), Australian-based manager of the Bald Hill lithium and tantalum mine in
Western Australia, will make a strategic investment of C$5 million in Novo (the “Financing”) through the
purchase of 12,820,512 units of Novo at C$0.39 per unit (each, a “Unit”), representing an undiluted 4.9%
post-Financing position in Novo
• The Unit price represents a 26% premium to Novo’s closing price on December 14, 2022 and Novo’s 30-
day trailing volume-weighted average price (“VWAP”), and the Financing is subject to a contractual hold
period expiring June 30, 2023
• Each Unit will consist of one common share of Novo and one-quarter of one common share purchase
warrant (each a “ Warrant”). E ach whole Warrant will entitle the holder to purchase one additional
common share of the Company at a price of C$0.60 per share for a term of two years following the closing
of the Financing
• Simultaneously, Novo is accelerating exploration and evaluation of its prospective battery minerals
tenements via an earn -in agreement whereby Liatam will have the right to incur A$1.5 million in
exploration expenditure over 24 months (the “ Earn-In”) to earn an 80% interest in battery mineral rights
(the “Battery Minerals JV”) in the Quartz Hill project (“Quartz Hill”) immediately south of Novo’s Nullagine
Gold project (“NGP”)
• Novo will be free-carried to the earlier of a bankable feasibility study or A$20 million in aggregate
expenditure at Quartz Hill; Novo retains a 20% interest in the Battery Minerals JV , 100% interest in gold
and silver rights, or to elect to convert the 20% interest in the Battery Minerals JV into a royalty right
• Liatam also granted an option over Novo’s Pilbara tenure, subject to certain exclusions, to add lithium
rights to the Earn-In
VANCOUVER, BC - Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO , NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to welcome Liatam as a new shareholder and project investor at Quartz Hill.
“Novo is thrilled to welcome Liatam as a new shareholder and project investor at Quartz Hill” commented Mr.
Mike Spreadborough, Novo’s Executive Co-Chairman and acting Chief Executive Officer. “Liatam brings
significant exploration and operational experience and success from the Bald Hill lithium and tantalum
operation in Western Australia and the Moblan lithium exploration project in Quebec.
“Novo looks forward to working with Liatam to progress the definition of battery mineral prospectivity across
Quartz Hill and potentially the Pilbara region of Western Australia.
“Novo has a dedicated focus to exploration over the next 12 months and the C$5 million secured at a premium
adds to our already robust cash position and places the Company in a strong position to continue drilling our
exciting Pilbara gold and battery metals targets.”
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Figure 1: Map of Novo’s Pilbara tenure
Financing
Promptly following receipt of Toronto Stock Exchange (“TSX”) acceptance of notice of the Financing, Novo
expects to close the Financing raising gross proceeds of C$5 million through the issue of 12,820,512 Units at a
price of C$0.39 per Unit. All of the Units will be subscribed for by Liatam. The Unit price represents a 26%
premium to Novo’s closing price on December 14, 2022 and 30-day trailing VWAP.
Each Unit will consist of one common share of Novo and one-quarter of one Warrant. Each whole Warrant will
entitle Liatam to purchase one additional common share of the Company at a price of C$0.60 per share for a
term of two years following the closing of the Financing.
All of the securities issued in the Financing will be subject to a statutory hold period expiring four months and
one day following the closing of the Financing , along with an additional contractual hold period expiring on
June 30, 2023.
The net proceeds from the Financing will primarily be used by Novo to fast-track exploration at the Company’s
key projects, including the Becher Area, Nunyerry North and Purdy’s North, as well as for general working
capital purposes.
The Financing is subject to receipt of approval from the TSX.
Argonaut PCF Limited of Perth, Western Australia will receive a cash finder’s fee of C$0.25 million, along with
641,025 finder’s warrants (the “ Finder’s Warrants”). Apart from being non -transferable and expiring three
years following the closing of the Financing, the Finder’s Warrants are subject to similar terms as the Warrants.
Earn-In
Novo’s wholly-owned Australian subsidiary , Nullagine Gold Pty Ltd., has executed a series of definitive
agreements with Liatam , pursuant to which Liatam has been granted the right to earn an 80% interest in
battery mineral rights at Quartz Hill.
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Liatam is required to spend A$1.5 million over 24 months in order to complete the Earn-In. Novo will be free-
carried to the earlier of the completion of a bankable feasibility study or Liatam having sole funded A$20
million (including the initial A$1.5 million Earn-In amount ) ( the “Contribution Date ”). On or around the
Contribution Date, Novo will have the right to elect to contribute its pro-rata share of expenditure or convert
to a royalty equal to 1% of gross lithium sale proceeds or an amount equal to 20% of any royalty owing to the
State of Western Australia on gross battery mineral sale proceeds (other than lithium).
Novo has also granted Liatam a one -time right exercisable prior to June 30, 2023 , pursuant to which Liatam
can add lithium rights over Novo’s Pilbara tenements of Liatam’s choosing (subject to certain exclusions and
tenements which are already subject to arrangements with third parties) to the Battery Minerals JV and Earn-
In at an agreed rate.
The Earn-In is otherwise subject to industry -standard earn -in and joint venture conditions, including
coordination of exploration and development activities amongst the parties. Throughout the Earn-In, Liatam’s
exploration activities will be prioritized. Liatam also has the right to terminate the Earn -In after spending
A$0.75 million.
Under the Earn-In, battery mineral rights include lithium, nickel, cobalt, graphite, manganese, aluminium, tin,
tantalum, caesium, rubidium, magnesium, vanadium, rare earth elements, and any other minerals defined as
being enriched in and hosted in LCT and NYF pegmatites, in any and all forms, but not gold or silver.
Under the Earn-In, lithium rights includes lithium, tin, tantalum, caesium, rubidium, pegmatite -hosted rare
earths, and any other minerals defined as being enriched in and hosted in LCT and NYF pegmatites, in any and
all forms, but not gold or silver.
Figure 2: Map of Quartz Hill and the NGP
QP STATEMENT
Dr. Quinton Hennigh (P. Geo.) is the qualified person, as defined under National Instrument 43-101 Standards
of Disclosure for Mineral Projects , responsible for, and having reviewed and approved, the technical
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information contained in this news release. Dr. Hennigh is the Non-Executive Co-Chairman and a Director of
Novo.
ABOUT NOVO
Novo explores and develops its prospective land package covering approximately 10,500 square kilometres in
the Pilbara region of Western Australia, including the Beatons Creek gold project, along with two joint ventures
in the Bendigo region 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 Leo Karabelas at (416) 543-3120 or e-mail [email protected].
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, statements as to the expected use of proceeds from the
Financing. 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 achieveme nts 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 management’s discussion and analysis for the nine-month period ended
September 30, 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 resu lts 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.