NOVO: Novo Undertakes Transformative Acquisition to Fast-Track Planned Pilbara Conglomerate Gold Production
VANCOUVER, British Columbia, Aug. 04, 2020 (GLOBE NEWSWIRE) — Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that it has today signed an arm’s length agreement to acquire all of the outstanding shares of privately held Millennium Minerals Limited (“Millennium”) from IMC Resources Gold Holdings Pte Ltd, Heritas Capital Management (Australia) Pty Ltd, and IMC Resources Ltd (collectively, “IMC”) (the “Acquisition”). Millennium’s assets are located approximately 10 km south of Novo’s 100% controlled Beatons Creek conglomerate gold project (the “Beatons Creek Project”) in the Nullagine region, Shire of East Pilbara, Western Australia (see Figure 1 below) and include the requisite processing infrastructure to accelerate Novo’s planned transition to a producing gold company1.
All amounts are in United States dollars unless otherwise indicated.
- Near-term Gold Production: Fast-tracks Novo’s transition to becoming Australia’s next junior gold producer via production at its Beatons Creek Project. This will enable Novo to progress its broader organic exploration on its numerous other gold projects across the Company’s approximately 13,750 km2 Pilbara tenure (see Figure 2 below).
- Infrastructure in Place to Leverage Beatons Creek Project: The Acquisition provides Novo with key processing infrastructure, including a 1.5 Mtpa processing plant, tailings storage facility, contract power station, administration offices, assay laboratory, and a 230 room camp (the “Millennium Assets”) (see Figure 3 below).
- Significantly Reduced Timeline to Production: The Acquisition will substantially reduce the timeline that would otherwise be required to bring the Beatons Creek Project into production.
- Solidifies Novo’s Tier 1 Jurisdiction Exposure: Western Australia is the top-ranked globally recognized mining jurisdiction, according to the Fraser Institute2. Novo’s key focus is in the Pilbara Region of Western Australia, hosting extensive natural resources, operations and infrastructure.
- Limited Dilution, Strong Balance Sheet: The Acquisition will result in modest equity dilution of approximately 15%, an exceptional outcome for an exploration company planning on transitioning to producer status.
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