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.