- Novo (NVO) has amended its US$60 million credit facility with Sprott Resource Lending and Sprott Private Resources Lending II
- The company renegotiated the facility’s second tranche to total US$15 million available to be drawn until September 30, 2021
- Novo put forth the amendments for financial flexibility as its Beatons Creek Gold Project reaches commercial production
- Novo Resources explores for gold in Western Australia
- Novo (NVO) is down 3.39 per cent and is currently trading at C$2.85 per share
Novo (NVO) has amended its US$60 million credit facility with Sprott Resource Lending and Sprott Private Resources Lending II.
The company renegotiated the facility’s second tranche to total US$15 million available to be drawn until September 30, 2021. This total includes the US$5 million Novo recently drew down.
Novo put forth the amendments for financial flexibility as its Beatons Creek Gold Project reaches commercial production.
It also required the liquidity having sold a portion of its Blue Spec Gold Project to Calidus Resources Limited for significant equity in lieu of cash.
The remaining US$10 million under the renegotiated second tranche is subject to the satisfaction by Novo, or waiver by Sprott, of certain conditions set out in the credit agreement governing the facility.
In addition to the lender’s 2 per cent cash discount, the company will pay Clarus Securities and Stifel GMP a 4.5 per cent cash fee on amounts drawn under the facility.
Novo drew down the first US$35 million tranche of the facility in September 2020.
Novo Resources is a gold exploration company focused on its land package spanning 14,000 square kilometres in the Pilbara region of Western Australia.
Novo (NVO) is down 3.39 per cent and is currently trading at C$2.85 per share as of 10:13 am ET.