Novo Completes Second and Final Tranche of Sale of New Found GOLD Shares FOR C$57.0 Million
Suite 880, 580 Hornby Street
Vancouver, BC, Canada V6C 3B6
P: +1-416-543-3120 E: [email protected] www.novoresources.com
AUGUST 8, 2022
NOVO COMPLETES SECOND AND FINAL TRANCHE
OF SALE OF NEW FOUND GOLD SHARES FOR C$57.0 MILLION
VANCOUVER, BC - Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO , NVO.WT & NVO.WT.A)
(OTCQX: NSRPF) is pleased to advise that it has closed the second and final tranche of its previously announced
sale of 15 million shares (the “Transaction”) of New Found Gold Corp. (“New Found”)1. In the second tranche,
Novo sold a total of 6.75 million escrowed New Found shares to a corporation controlled by Eric Sprott
(“Sprott”) at C$8.45 per share for gross proceeds of approximately C$57.0 million (“Tranche 2”). Inclusive of
the gross proceeds raised from the sale of 8.25 million New Found shares sold to Sprott at C$8.35 per share
in the first tranche1, gross proceeds of approximately C$125.9 million have been raised from the Transaction.
Novo’s consolidated unaudited cash position is currently approximately C$126.4 million. After-tax proceeds
from the Transaction will continue to be used to provide Novo with the flexibility to aggressively advance its
exploration programs across the Pilbara and Victoria, Australia, while expediting a feasibility study on the Fresh
component of the Company’s Beatons Creek project in Nullagine, Western Australia2 (“Beatons Creek”).
Sprott Resource Lending Corp., Novo’s senior secured lender, waived any event of default which was triggered
by Novo’s recent operational pause at its Beatons Creek project in Western Australia 3 in anticipation of full
repayment of the US$40 million ( currently approximately C$51.4 million) senior secured credit facility (the
“Credit Facility”) in August 2022 subsequent to completion of the Transaction. Novo will use the net proceeds
from Tranche 2, in part, to repay the Credit Facility in full and will provide an update once repayment has been
made leaving Novo free of long-term debt.
Update on Beatons Creek Fresh Approval
The Company also advises that the Western Australian Environmental Protection Authority’s (“EPA”) decision
to not assess the Company’s submission regarding the Fresh mineralization component of Beatons Creek4 has
been appealed by a local proponent who is seeking to address a limited numbe r of questions relating to
potential impacts to groundwater in the Nullagine area. The Company has all technical information readily
available to confidently address these questions and is preparing a response to this appeal and expects to
resolve it in due course. Importantly, in the case of an appeal against a decision by the EPA to not assess a
proposal, the original decision not to assess stands until the appeal is determined. As such, the Company will
continue to engage with the Western Australian Depar tment of Mines, Industry Regulation and Safety
(“DMIRS”) to seek approval to mine the Beatons Creek Fresh mineral resource and expects to make a final
investment decision post receipt of results of the feasibility study3.
QP STATEMENT
Dr. Quinton Hennigh (P.Geo.) is the qualified person, as defined under National Instrument 43-101 Standards
of Disclosure for Mineral Project s, responsible for, and having reviewed and approved, the technical
information contained in this news release. Dr. Hennigh is the non-executive co-chairman and a director of
Novo.
ABOUT NOVO
Novo operates its flagship Beatons Creek project while exploring and developing its prospective land package
covering approximately 11,000 square kilometres in the Pilbara region of Western Australia. In addition to the
Company’s primary focus, Novo seeks to leverage its internal geological expert ise to deliver value -accretive
opportunities to its shareholders. For more information, please contact Leo Karabelas at (416) 543-3120 or e-
mail [email protected].
1 Refer to the Company’s news releases dated April 12, 2022 and April 27, 2022.
2 Refer to the Company’s news release dated June 14, 2022.
3 Refer to the Company’s news release dated June 14, 2022.
4 Refer to the Company’s news release dated July 11, 2022.
{02601246;1} 2
CAUTIONARY STATEMENT
The decision by the Company to produce at the Beatons Creek Project was not based on a feasibility study of
mineral reserves demonstrating economic and technical viability and, as a result, there is an increased
uncertainty of achieving any particular level of recovery of minerals or the cost o f such recovery, including
increased risks associated with developing a commercially mineable deposit. Production has not achieved
forecast to date. Historically, such projects have a much higher risk of economic and technical failure. There is
no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production
costs would have a material adverse impact on the Company’s cash flow and future profitability.
The Company cautions that its declaration of commercial production effective October 1, 20215 only indicates
that Beatons Creek was operating at anticipated and sustainable levels and it does not indicate that economic
results will be realized.
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, that Novo will use proceeds from Tranche 2 to repay the
Credit Facility, will continue to use net proceeds from the Transaction to provide Novo with the flexibility to
aggressively advance exploration efforts across the Pilbara and Victoria while expediting a feasibility study on
the Fresh component of the Company’s Beatons Creek project in Nullagine , Western Australia , that the
Company expects to resolve the appeal to the EPA’s decision in due course, and that the Company will
continue to engage with DMIRS to seek approval to mine the Beatons Creek Fresh mineral resource and
expects to make a final i nvestment decision post receipt of results of the feasibility stud y. 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
management’s discussion and analysis for the three-month period ended March 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 even ts 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.
5 Refer to the Company’s news release dated October 12, 2021.