- Novo Resources Corp. (NVO) has agreed to sell its 15 million shares in New Found Gold for $125.9 million
- The first tranche of 8.25 million New Found shares is scheduled to settle on April 27, 2022
- The second tranche of 6.75 million shares is scheduled to settle on August 5, 2022
- The funding will allow Novo to advance exploration and fund a feasibility study of the Beatons Creek project in Western Australia
- Novo Resources Corp is engaged in evaluating, acquiring, and exploring natural resource properties with a focus on gold
- Novo Resources Corp. (NVO) opened trading at C$0.96 per share
Novo Resources (NVO) has agreed to sell its shares in New Found Gold to a corporation controlled by Eric Sprott for $125.9 million.
Mike Spreadborough, Executive Co-Chairman of Novo commented on the transaction.
“Novo has always considered its sizeable investment portfolio as a means to fund growth expenditure. The sale of our New Found holding at a premium of 9.3 per cent to the closing price of C$7.68 is an excellent result and allows Novo to deleverage our balance sheet, and continue to focus on optimizing operations at Beatons Creek and aggressively accelerate growth and expansion plans across Western Australia and Victoria. We would also like to thank Sprott Lending for their support since our transition to operations in late 2020.”
The first tranche of the sale for 8.25 million New Found shares at C$8.35 per share for gross proceeds of C$68.9 million is scheduled to complete on April 27, 2022.
The second tranche totals 6.75 million New Found shares at C$8.45 per share for gross proceeds of C$57.0 million and is scheduled to settle on August 5, 2022.
The funding will allow Novo to advance exploration while expediting a feasibility study on the Fresh component of the company’s Beatons Creek project in Nullagine, Western Australia. Novo Resources Corp is engaged in evaluating, acquiring, and exploring natural resource properties with a focus on gold. The organization has business interests in properties located in Australia, Canada, and the USA.
Novo Resources Corp. (NVO) opened trading at C$0.96 per share.