Novo Resources Corp. (TSXV:NVO) and Artemis Resources Ltd. (ASX:ARV) have entered into a joint venture/earn-in agreement, whereby Novo will earn 50%
interest of Artemis’ gold rights (gold in conglomerate and/or paleoplacer style mineralization) by spending AUD$2 million on exploration within two
years. Artemis’ 1,536 sq. km land package hosts the Purdy’s Reward gold project, adjacent to Novo’s recently announced acquisition prospect the Comet
Well project in Western Australia (Figure 1). While this agreement along with the recently staked ground in the Karratha region has the potential to
provide Novo the potential for significant resource growth, it is early days and the company’s primary focus remains on advancing its nearby Beatons Creek project (Figure 2) towards production. We view the transaction positively, as the company continues to grow and consolidate
its land holdings in the area. Novo trades at C$150/oz a premium to peers (C$81/oz), which is justified both on the project’s potential for significant
resource growth and its likely low capital cost.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
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Priced as of prior trading day's market close, EST (unless otherwise noted).
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Company Specific Disclosure Details
Novo Resources Corp. - TSXV:NVO - 1,2,3,4
Artemis Resources Ltd. - ASX:ARV - None
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