- Novo Resources Corp. (NVO) has closed the final tranche of 15 million New Found Gold Corp. shares for $57 million
- It sold 6.75 million New Found shares to a corporation controlled by Eric Sprott
- Approximately $125.9 million have been raised from the entire transaction
- Funds will go towards advancing specific projects, a feasibility study for the Beatons Creek Project, and to help free itself from long-term debt
- The Australian government has appealed its decision on a submission Novo made for the Beatons Creek Project
- Novo Resources Corp. (NVO) is down 1.82 per cent trading at $0.54 per share as of 11:47 a.m. ET
Novo Resources Corp. (NVO) has closed the final tranche of 15 million New Found Gold Corp. shares for $57 million.
In the second tranche, Novo sold a total of 6.75 million escrowed New Found shares to a corporation controlled by Eric Sprott at $8.45 per share. Including sales from the first tranche, approximately $125.9 million have been raised from the entire transaction.
Novo stated that after-tax proceeds will allow it to advance its exploration programs across the Pilbara and Victoria areas in Australia, and to help finish a feasibility study on the Beatons Creek Project.
The senior secured lender involved in the transaction, Sprott Resource Lending Corp., waived any event of default triggered by a recent operational pause at Beatons Creek. This was done in anticipation of full repayment of the $51.4 million senior secured credit facility in August following to completion of the transaction.
According to Novo, it will use some of the net proceeds from the final tranche to repay the credit facility in full, leaving itself free of long-term debt.
The company also announced that the Western Australian Environmental Protection Authority’s decision to not assess the submission regarding a component of Beatons Creek has been appealed by a local advocate seeking to address impacts on groundwater in the Nullagine area.
Novo Resources Corp. (NVO) is down 1.82 per cent trading at $0.54 per share as of 11:47 a.m. ET.
