Novo Announces Upsize of Previously Announced Non-Brokered Private Placement to C$5 Million
Novo Announces Upsize of Previously Announced Non-Brokered Private
Placement to C$5 Million
Not for Distribution to United States Newswire Services or for dissemination in the United States
VANCOUVER, British Columbia, Aug. 11, 2020 -- Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX:
NSRPF) is pleased to announce that due to demand from investors, it has increased the size of the previously announced non-
brokered private placement of subscription receipts (“Subscription Receipts”) of the Company, from C$3 million to C$5 million
(the “Increased Non-Brokered Offering ”). The Increased Non-Brokered Offering is being undertaken in conjunction with
Novo’s planned acquisition of Millennium Minerals Limited (the “Acquisition”) (please refer to the Company’s news releases
dated August 4, 2020 and August 5, 2020 for further details).
Under the Increased Non-Brokered Offering, the Company may issue up to 1,538,461 Subscription Receipts at a price of
C$3.25 per Subscription Receipt for gross proceeds of up to C$5 million (up to approximately US$3.7 million). Finder’s fees
may be payable with respect to subscriptions under the Increased Non-Brokered Offering.
Together with the previously upsized brokered private placement to raise gross proceeds of C$42.5 million (the “ Brokered
Offering”) (see the Company’s news release of August 4, 2020 and August 5, 2020 ), the Company may issue up to an
aggregate 14,615,384 Subscription Receipts at a price of C$3.25 per Subscription Receipt for aggregate gross proceeds of up
to C$47.5 million (up to approximately US$35.4 million), excluding any subscription receipts that may be issued pursuant to a
20% over-allotment option granted to the brokered private placement agents.
The net proceeds from the Brokered Offering and the Increased Non-Brokered Offering will be used to fund the Acquisition, for
capital expenditures relating to the restart of Millennium Minerals Limited’s infrastructure, and for general corporate working
capital purposes related thereto.
The Brokered Offering and the Increased Non-Brokered Offering are subject to certain conditions including, but not limited to,
receipt of TSX Venture Exchange and any other necessary approvals, and are expected to close later this month.
About Novo Resources Corp.
Novo’s focus is primarily to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up
a significant land package covering approximately 13,750 square kilometres with varying ownership interests. 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 [email protected]
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”
Quinton Hennigh
President and Chairman
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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 consummation of the Brokered Offering and the
Increased Non-Brokered Offering and use of the proceeds thereof. Forward-looking 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, obtaining TSX Venture Exchange approval to
the Brokered Offering, the Increased Non-Brokered Offering and the Acquisition, satisfaction of the other conditions precedent
to the completion of the Acquisition, and customary risks of the mineral resource exploration industry.
This news release does not constitute an offer for sale, or a solicitation of an offer to buy, in the United States or to any “U.S
Person” (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “ 1933 Act”)) of any
equity or other securities of Novo. The securities of Novo have not been, and will not be, registered under the 1933 Act or
under any state securities laws and may not be offered or sold in the United States or to a U.S. Person absent registration
under the 1933 Act and applicable state securities laws or an applicable exemption therefrom.