Novo Resources Corp. (TSXV:NVO) announced it has entered into a binding Memorandum of Agreement (MOA) to consolidate its land holdings (6.5km in strike)
at its Karratha gold discovery with Grant’s Hill Gold Pty Ltd (GHG) and Karratha Gold Pty Ltd (KG), the company’s two wholly owned Australian subsidiaries.
The 5 tenements include the Comet Well property, adjacent to Purdy’s Reward (Figure 1) where trench work is set to begin shortly. Further exploration work is to be planned for the consolidated
~8km of strike, once permits and approvals are in place. Pursuant to the MOA, Novo will pay GHG and KG AU$1.5 million in cash for signing fees and
will issue AU$1.5 million worth of the company’s common shares, along with further payments of AU$3 million in cash and AU$3 million in shares, three
years after the initial payment. Novo trades at C$142/oz a premium to peers (C$77/oz), which is justified by Beatons Creek potential for significant
resource growth, likely low operating and capital costs as well as the potential for significant regional growth.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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Novo Resources Corp. - TSXV:NVO - 2,3,4
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