- Novo Resources (NVO) has signed two agreements worth roughly C$3.73 million to become the sole owner of the Belltopper gold project in Australia
- NVO is acquiring the remaining interests in the Queens project from Kalamazoo Resources and the Malmsbury project from GBM Resources
- The company has already identified a “strong pipeline” of gold targets on Belltopper
- Its 2023 drilling will test these defined areas to help define high-grade gold
- Novo Resources (NVO) is up 1.59 per cent, trading at C$0.32 per share as of 1:33 p.m. EST
Novo Resources (NVO) has signed two agreements worth roughly C$3.73 million to become the sole owner of the Belltopper gold project in Australia.
The company is acquiring the remaining 50 per cent joint venture interests in the Queens project from Kalamazoo Resources and the Malmsbury project from GBM Resources.
To break it down, NVO will pay A$750,000 in cash and issue more than two million of its common shares (worth another A$750,000) to Kalamazoo for its 50 per cent of the Queens project.
As for the other agreement, NVO agreed to pay A$1 million cash and issue over four million of its common shares and roughly two million common share purchase warrants to GBM. A single warrant will allow GBM to purchase another NVO common share for CA$0.60 for two years after being issued.
The shares and warrants combined are worth approximately A$1.6 million and will secure NVO with 50 per interest in the Malmsbury project.
Both agreements are still subject to required approvals.
Consolidation to help NVO’s strategy
Additionally, NVO stated that consolidating Belltopper will give it a central, strategic position in the region, which is nearby Agnico Eagle’s high-grade Fosterville gold mine.
Furthermore, the company has already identified a “strong pipeline” of gold targets on Belltopper. Several high-grade gold targets have been defined within an altered corridor.
“Diamond drilling planned in 2023 will test remaining high-priority mapping targets at Belltopper, in addition to developing high-grade shoot potential on the Leven Star Reef and key significant results from the diamond drilling campaign completed in 2022,” NVO’s Executive Co-Chairman, interim CEO, and director, Mike Spreadborough, said.
The company is working to support smarter drill targeting of a wide gold system in the area and its associated higher-grade zones.
Novo Resources (NVO) is up 1.59 per cent, trading at C$0.32 per share as of 1:33 p.m. EST.
