By Cory Novo Continues To Move Beatons Creek Toward Production
After my last call and interview with Novo management I was impressed at the duel approach of the Company to move more aggressively towards production at Beatons Creek while also continuing to explore on the other properties. The news below outlines more progress at the Beatons Creek property with a memorandum of understanding (MOU) between Novo and Sumitomo Corporation (click here for the company’s Wikipedia page for more information).
While there are no definitive terms in this MOU the key point is when the “Study” (including basic engineering design work and other studies, and permitting) is completed in late 2017 Sumitomo will have “the right to elect to participate directly in the Beatons Creek project and/or make an equity investment in the Company”. This could be a relationship that is critical in bringing the Beatons Creek property into production but we will have to wait until the end of the year for the study and Sumitomo’s decision.
I hold shares in Novo and will be closely watching how the Company progresses with Beatons Creek but also very closely on the exploration drilling at the other properties.
Click here to listen to the most recent interview with Quinton Hennigh and Rob Humphryson.
Also click here to visit the Novo website for more information on the different properties.
Here’s the news…
NOVO SIGNS MOU TO PARTNER WITH SUMITOMO CORPORATION
TO MOVE BEATONS CREEK TOWARDS PRODUCTION
VANCOUVER, BC, July 6, 2017 – Novo Resources Corp. (TSX-V: NVO; OTCQX: NSRPF) (“Novo” or the “Company”) is pleased to announce that the Company has entered into a memorandum of understanding (the “MOU”) with Sumitomo Corporation, Japan (“Sumitomo”) to further develop the Company’s Beatons Creek project in the Nullagine region of Western Australia. The MOU is non-binding except as to certain provisions.
Sumitomo will provide certain of its personnel to assist the Company with the preparation of its internal study, including basic engineering design work and other studies, and permitting (the “Study”). The Study is being targeted for completion in late 2017. Once the Company and Sumitomo have completed the Study to both parties’ satisfaction, Sumitomo will have the right to elect to participate directly in the Beatons Creek project and/or make an equity investment in the Company (the “Option”). If the Option is exercised, the Company and Sumitomo will enter into negotiations as to the terms and conditions of the definitive agreement pertaining to Sumitomo’s investment in the Company and/or the Beatons Creek project within a certain period. If the MOU is terminated at any time, provided the Study is completed, without the First Option having been exercised, Sumitomo will retain a right of first refusal to match any joint venture or financing terms negotiated with a third party.
“I recently joined Novo Resources following a site visit to the Beatons Creek conglomerate gold deposit near the town of Nullagine in WA, where I was afforded a personal glimpse into a deposit which is unique in the Australian context”, commented Rob Humphryson, Novo’s recently appointed CEO. “The enthusiasm exhibited by Novo …read more
Source:: The Korelin Economics Report
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