Novo to Consolidate Interests in Large Land Position in Karratha Region, Western Australia
Novo to Consolidate Interests in Large Land Position in
Karratha Region, Western Australia
VANCOUVER, British Columbia, June 26, 2017
(GLOBE NEWSWIRE) -- Novo Resources Corp.
(TSX-V:NVO) (OTCQX:NSRPF) ( “Novo” or the
“Company”) is pleased to announce that Novo and
two of its 100% -owned Australian subsidiaries,
Grant’s Hill Gold Pty Ltd ( “GHG”) and Karratha Gold
Pty Ltd ( “KG”), have entered into a binding
Memorandum of Agreement ( “MOA”) that allows
Novo to consolidate its ownership in five key
tenements encompassing approximately 6.5 km of
strike along outcropping conglomerate -hosted gold
mineralization at Novo ’s new Karratha gold
discovery.
“We are extremely pleased to have consolidated
control over this exciting new gold discovery, ”
commented Dr. Quinton Hennigh, Chairman,
President, and director of Novo Resources Corp.
“The five tenements comprising the Comet Well
property cover about 6.5 km of strike along
outcropping gold -bearing conglomerates. Purdy ’s
Reward, part of our earn -in and joint venture with
Artemis Resources Ltd., sits immediately adjacent to
Comet Well and covers an additional 1.5 km of
mineralized strike. Comet Well and Purdy ’s Reward
combined give Novo control over 8 km of critical
outcropping conglomerate -hosted gold
mineralization. In addition, Novo has a 100%
interest, through staking, in the entirety of down dip
extensions of the mineralized conglomerate horizon.
We think this conglomerate may underlie a large
area on our ground south and southeast of Comet
Well-Purdy’s Reward.”
“Recent fieldwork at Purdy ’s Reward indicates the
mineralized conglomerate unit may be a few meters
thick,” explained Hennigh. “Local metal detectorists
continue to scour the area for gold nuggets which
are commonly the size and shape of watermelon seeds. Numerous small holes dug by detectorists are
scattered regularly along strike suggesting good continuity of mineralization. Importantly, many nuggets
are still encased in rock matrix derived directly from weathered conglomerate. ”
Figure 1
Figure 1: Map showing Novo ’s 100%
controlled mineral holdings, Novo -Artemis
farm-in/joint venture holdings and Comet
Well consolidated holdings in the Karratha
region.
Novo Resources Corp.
Figure 2
Figure 2: Map showing Novo ’s mineral
holdings in the Comet Well -Purdy’s Reward
area.
Novo Resources Corp.
“Expertise we gained exploring conglomerate -hosted gold mineralization at Beatons Creek puts us in an
exceptionally strong position to explore this new, potentially much larger gold project, ” continued Hennigh.
“First phase trench work will begin at Purdy ’s within a couple weeks. This MOA increases our exposure to
this discovery and puts us in a position to now extend exploration work along the entirety of the mineralized
Comet Well-Purdy’s Reward horizon. Novo plans to immediately seek necessary permits and approvals.
We are very excited by the potential we see at Comet Well -Purdy’s Reward and are anxious to commence
exploration work.”
Karratha Mineral Holdings
With the addition of this MOA and recent staking, Novo ’s Karratha mineral holdings consist of 7,638 sq km
of 100% controlled exploration licenses and applications, 1,536 sq km of mineral licenses subject to a
recently announced farm -in/joint venture agreement with Artemis Resources Ltd ( please refer to a news
release dated May 26 for further details ) and 54.5 sq km of mineral license applications at Comet Well
subject to the MOA discussed in this news release (Figures 1 and 2). Novo ’s total mineral holdings in the
Karratha region encompass 9,228.5 sq km.
Details of the MOA
Further to the Company ’s news release dated April 11, 2017, Novo, GHG and KG have entered into the
MOA with two arm’s length vendors (the “Vendors”) to earn a further interest in the Comet Well project (the
“Comet Well Project”). The Comet Well Project, acquired on April 11, 2017, consists of a 100% interest in
three prospecting licenses and a 100% interest in an exploration licence (collectively, the “Other
Licences”), and a 25% interest in a second exploration licence (the “Second Licence”).
Pursuant to the MOA, KG will be entitled to earn, via farm -in arrangements, an additional 55% interest in
the Second Licence by expending $4 million of exploration expenditure on the Second Licence. At the same
time, the Vendors will be entitled to earn, via farm -in arrangements, an aggregate 20% interest in the Other
Licenses by expending $50,000 of exploration expenditure on the Other Licenses. Once all respective
farm-in commitments are satisfied, the net position will be that Novo, via GHG and KG, will hold an 80%
interest in each of the Other Licences and the Second License, with the Vendors holding the remaining
20% interest.
The Vendors, GHG and KG will then enter into two joint venture agreements covering the Comet Well
Project, with the key following joint venture ( “JV”) terms: 1) the Vendors will hold a 20% interest in each JV
and will be free carried for exploration related expenditures until a decision to mine is made; 2) Novo,
through GHG and KG, will hold an 80% interest in each JV and will be the Manager of each JV. Novo will
manage and control all exploration activities; and 3) after a decision to mine is made, Novo and the
Vendors will contribute to joint venture costs in proportion to their JV interests. Standard dilution clauses will
apply thereafter, and if the Vendors ’ aggregate JV interest drops below 5% their JV interests will convert to
an aggregate 1% net smelter royalty.
The Vendors will retain prospecting and excavation rights in relation to surface, alluvial and elluvial soils on
the five tenements which comprise the Comet Well Project. This does not extend to minerals in
conglomerates or primary rock or bedrock.
The MOA is binding but is subject to standard conditions precedent including receipt of Australian Foreign
Investment Review Board approval, TSX Venture Exchange approval, and obtaining any other required
third party consents. Once these conditions are satisfied, Novo will pay to the Vendors AU$1.5 million cash
as a signing fee. In addition, as part of further conditions of the MOA, Novo will issue to the Vendors
AU$1.5 million worth of Novo ’s common shares (the “Initial Consideration Shares ”), with the number of
shares to be calculated based on Novo ’s then prevailing 5 -day trailing volume -weighted average price
(“VWAP”). The Initial Consideration Shares will be subject to a statutory hold period expiring four months
from the date of issuance. Three years after the initial payment is made, a further payment of AU$3 million
in cash and AU$3 million worth of Novo ’s common shares (the “Subsequent Consideration Shares ”) will be
issued, with the number of shares to be calculated based on Novo ’s then prevailing 5 -day trailing VWAP.
The Subsequent Consideration Shares will also be subject to a statutory hold period expiring four months
from the date of issuance.
The MOA will be replaced by binding definitive legal agreements in due course.
Dr. Quinton Hennigh, a qualified person as defined by National Instrument 43 -101 and the Company ’s
Chairman, President and a director, has approved the technical contents of this news release.
About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia. Novo also
controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au -Ag vein district,
Nevada. For more information, please contact Leo Karabelas at (416) 543 -3120 or e -mail
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”
Quinton Hennigh
Chairman and President
Forward -looking information
Some statements in this news release contain forward -looking information (within the meaning of Canadian
securities legislation) including, without limitation, the statement as to the expected consummation of the
Comet Well Project. 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, the receipt of TSX Venture Exchange
approval.
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.
Photos accompanying this release are available at
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