- Mining company, Novo Resources (NVO) has signed a binding terms sheet with ASX-listed Calidus Resources, regarding a property transaction
- The company will sell a portion of its Blue Spec project to Calidus for approximately C$18.6 million in cash
- Novo will use cash from the sale to pursue exploration at Beatons Creek, and other gold targets in the region
- Calidus will pay a deposit of approximately C$192,000 within two business days, with the remaining consideration due by November 30
- Novo Resources (NVO) is down 4.39 per cent and is currently trading at $3.70 per share
Mining company, Novo Resources (NVO) has signed a binding terms sheet with ASX-listed Calidus Resources, regarding a property transaction.
Novo has agreed to sell a portion of its Blue Spec project to Calidus, for a cash consideration of approximately C$18.6 million. The company previously bought the Blue Spec project in August of 2015, for a consideration of approximately C$674,000.
Unfortunately, the project is not compatible with Novo Resources’ recently acquired Nullagine mill. In contrast, Calidus intends to build a mill circuit that will be better suited for Blue Spec’s mineralisation style through its Warrawoona mining operation.
Calidus also plans to implement underground mining at Warrawoona, which will benefit development of Blue Spec.
Within two business days, Calidus will pay a deposit of approximately C$192,000 to Novo, which can not be refunded if the transaction falls through. The remaining amount of the cash consideration will be due by November 30, 2020.
Novo will use cash from the sale to advance expansion of its Beatons Creek deposit, and other gold targets in the region.
Novo’s Chairman and President, Quinton Hennigh, said that both Novo and Calidus see strong benefits to this transaction.
“Calidus plans to develop a sulfide circuit at Warrawoona that is capable of treating Blue Spec style mineralisation, and also have plans to develop underground operations that can complement development of the Blue Spec project.
“With its recent acquisition of Millennium Minerals, Novo is moving its Beatons Creek project toward production.
“Cash from this sale will allow Novo to aggressively pursue exploration at Beatons Creek, as well as test the company’s numerous other near-surface gold targets in the region, part of Novo’s vision for growth in the Nullagine camp,” he said.
Novo Resources (NVO) is down 4.39 per cent and is trading at C$3.70 per share at 2:21pm EDT.