VANCOUVER, British Columbia, Nov. 25, 2020 (GLOBE NEWSWIRE) — Novo Resources Corp. (“ Novo ” or the “ Company ”) (TSX-V: NVO & NVO.WT; OTCQX: NSRPF) is providing an update on the previously announced sale (the “ Transaction ”) of a portion of its Blue Spec project comprising mining leases 46/115 and 46/244 and related mining information (the “ Subject Blue Spec Tenements ”) in Western Australia to ASX-listed Calidus Resources Limited (“ Calidus ”) ( please see the Company’s news release dated September 21, 2020 for further details ). The Company has executed an amended terms sheet (the “ Amended Terms Sheet ”) and agreed to a revised transaction structure and payment schedule with Calidus as follows:

  • Calidus will pay A$2.5 million to the Company by November 30, 2020 in exchange for a 10% interest in the Subject Blue Spec Tenements;
  • Calidus has the right to acquire an additional 10% interest in the Subject Blue Spec Tenements by paying the Company an additional A$2.5 million (the “ Second Payment ”) by January 31, 2021;
  • At Calidus’ sole discretion, Calidus can increase the Second Payment to A$5 million in exchange for an additional 15% interest in the Subject Blue Spec Tenements (the “ Second Bonus Payment ”) (for an aggregate 25% interest);
  • In order to acquire the remaining interest in the Subject Blue Spec Tenements, Calidus must pay the Company the remaining A$11.8 million or A$14.3 million (either being the “ Remaining Payment ”) of the total agreed purchase price of A$19.5 million by March 31, 2021;
  • If Calidus exercises its right to make the Second Bonus Payment, A$1.5 million of the Remaining Payment of A$11.8 million can be satisfied by the issuance of ordinary shares of Calidus at a 15-day trailing volume weighted average price prior to the date of issuance, subject to Calidus shareholder approval;
  • If Calidus does not make the Second Bonus Payment, the Remaining Payment must be made in cash for the full A$14.3 million; and
  • If Calidus fails to complete the Transaction in full by March 31, 2021, Novo will have an 18-month option to repurchase any residual interest in the Subject Blue Spec Tenements held by Calidus for 50% of the aggregate consideration paid by Calidus for that interest.

CLICK HERE to read the full news release.

5 thoughts on “Novo: Provides Update on Partial Sale of Blue Spec Project

  1. Peter van Soest says:

    Ongoing good preparations for production and improve the companies outlook for becoming a solid long lasting goldproduces/explorer. And yet the accelaration of loss of share prices.
    What is really going on?

  2. Rick Flaig says:

    Seems like Kirkland Lake gold is dumping its shares of Novo gold, seems like with potential production coming online soon they are losing confidence?

    1. Sach says:

      Yes, they want out in a hurry and I feel like a bag holder today. I am thinking I would be better off not investing (or speculating) on fundamentals or management competence and instead overpay for a few acres of land and live my last years on it. (I am going to Texas this week to kick some dirt around.)

      I read Bob Moriarty’s books about buying low and selling high but why should I buy low at $1.88 USD if the dream team at Kirkland Lake wants out fast at that price? In other words, I don’t feel competent buying more shares.

  3. Hi Erik,
    very actuell : Kirkland sells surprisingly a lot of Novo shares for 2,45 ???
    Now whre novo finally becomes a producer and will generate continous cash ….. !
    Does Kirland needs money ?? ( I d’ont thk so, BUT … )

    Pls kindly try to explain what is there behind ??

    best, Sabine, Frankfurt Germany

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