By Cory Novo to Consolidate Interests in Core Tenements Within New Gold Discovery in Karratha Region, Western Australia
Novo has been the standout exploration stock over the past month thanks to its recent acquisition of the Purdy’s Reward project in the Karratha region of Western Australia. The news today (below) outlines the consolidation of additional tenements in the region. This region could become the next major discovery for the industry but there is still a lot of work to do. The market is clearly paying attention and Novo is clearly the main exploration Company in this region.
Click here to visit the Novo website for more information.
Also I am a shareholder of Novo and will be chatting with Quinton next week at some time. If you have any questions please email me so we can address them in our next call.
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VANCOUVER, British Columbia, Aug. 03, 2017 (GLOBE NEWSWIRE) — Novo Resources Corp. (TSX-V:NVO) (OTCQX:NSRPF) (“Novo” or the “Company”) is pleased to announce that it has signed definitive agreements completing the acquisition of certain tenements in the Karratha region of Western Australia which comprise the Comet Well project (please see the Company’s news releases dated April 11 and June 26, 2017 for further details). The Comet Well project is comprised of three prospecting licenses and two exploration licenses that cover 54.5 square km. As detailed in the Company’s June 26, 2017 news release, outcropping gold-bearing conglomerates are the target of Novo’s exploration at Comet Well.
“The Comet Well tenements encompass a critical part of our Karratha gold project,” commented Dr. Quinton Hennigh, Chairman and President of Novo Resources Corp. “Similar gold-bearing conglomerates to those recently uncovered at Purdy’s Reward have been identified along approximately 6 km of strike at Comet Well. Novo plans to extend its exploration program into the Comet Well area once these tenements have been granted and permitting is complete.”
Summary of Terms
The aggregate cash portion of the purchase price pursuant to the definitive agreements is AU$1.75 million, of which AU$100,000 was paid upon signing of the preliminary agreements and AU$150,000 will be paid upon signing of the definitive agreements. The shares portion of the purchase price consists of 1,450,000 Novo common shares (collectively, the “Initial Consideration Shares”). The Initial Consideration Shares will be subject to a statutory hold period expiring four months from the date of issuance.
Three years after the signing of the definitive agreements, a further AU$3 million in aggregate is required to be paid and AU$3 million worth of Novo’s common shares (the “Subsequent Consideration Shares”) issued, with the number of Subsequent Consideration Shares to be calculated based on Novo’s then prevailing 5-day trailing volume-weighted average price (“VWAP”). The Subsequent Consideration Shares will also be subject to a statutory hold period expiring four months from the date of issuance.
A bonus (the “Discovery Bonus”) of AU$1,000,000, payable (at the vendors’ option), in cash and/or Novo common shares, is required to be paid if Novo publishes measured, indicated, or inferred gold resources of at least 250,000 ounces …read more
Source:: The Korelin Economics Report
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