Novo Resources Corp. (TSXV: NVO) recently signed a farm-in agreement to secure key land in Karratha, expanding total land package in Western Australia to 12,000 sq km
SmallCapPower | August 17, 2017: Novo Resources Corp. (TSXV: NVO) announced on August 15, 2017, that it has signed definitive agreement with Artemis Resources Limited (ASX: ARV) to farm-in and joint venture gold rights on Artemis’ 1,256 sq km exploration package in the Karratha region of Western Australia. As per the agreement, Novo Resources will farm-in to 50% of the Gold Rights in Artemis’s current and future tenements within 100 km of Karratha (including at Purdy’s Reward, Weerianna, Carlow Castle, Nickol River) and does not include Gold Rights to (i) gold disclosed in Artemis’ existing (at 18 May 2017) JORC compliant Resources and Reserves or (ii) gold, which is not within conglomerate and/or paleoplacer style mineralization or (iii) minerals other than gold. The farm-in commitment requires Novo Resources to expend A$2 million on exploration within two years of satisfying conditions precedent in the Farmin and JV Agreement including the issue of 4.0 million common shares to Artemis within 10 business days of the agreements being signed. Novo’s current outstanding shares stand at 68.49 million shares.
Related: See our interview with the CEO of Novo Resources Corp. (TSXV: NVO)
On successful completion of the farm-in commitment, three 50:50 joint ventures will be formed between Novo’s subsidiary, Karratha Gold Pty Ltd and three subsidiaries of Artemis. The joint ventures will be managed as one by Karratha Gold. Novo Resources and Artemis will contribute to further exploration and mining of the Gold Rights on a 50:50 basis. Novo and Artemis will soon undertake large diameter drilling and trenching at Purdy’s Reward and bulk sampling will be key to establishing grade of this nuggety gold system.
Since acquiring Comet Well gold project near Karratha, Australia in April 2017, Novo Resources has aggressively staked 6,771 square km of exploration licenses southward from Comet Well covering virtually all projected down dip extensions of gold-bearing conglomerates. Recently (Aug 11th 2017) Novo Resources announced the acquisition of further Interests in Karratha Region, Western Australia. The addition of the Artemis’ 1,236 sq km earn-in/joint venture of land brings Novo’s total land package to nearly 12,000 sq km in Western Australia. The key reason for such a significant acquisition of land package can be attributed to the recent recognition of gold-bearing conglomerates in a previously unexplored sequence of rocks near the base of the 2.7-2.85 billion year old Fortescue Group, a thick pile of sedimentary and volcanic rocks underlying vast portions of the Pilbara region.
Novo Resources is an exploration stage company and has not generated any operational revenues to date. For 1Q18 ending April 2017, the Company reported net loss of $0.6 million.
Shares of Novo Resources, meanwhile, have been a top performer on the TSX Venture exchange, soaring more than 500% year to date to its current price of $5.
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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