VANCOUVER, BC - Novo Resources Corp. (
Novo or the
Company) (ASX: NVO) (TSX: NVO & NVO.WT.A) (OTCQX: NSRPF) is pleased to announce an update to the Quartz Hill Project earn-in agreement with Liatam and also an additional investment by Liatam in Novo of A$1.8 million.
Liatam has now exceeded the required spend of A$1.75 million at the Quartz Hill Project, pursuant to the earn-in agreement announced by Novo on 15 December 2022¹. Quartz Hill is located in the Mosquito Creek Basin in the East Pilbara, Western Australia. Following completion of the earn-in requirement, the 80%/20% Quartz Hill Joint Venture (JV) between Liatam and Novo has now been formed.
Novo Executive Co-Chairman and Acting CEO Mike Spreadborough said,
“Novo is continuing its strategy to JV its prospective battery minerals tenements with battery minerals specialists. Novo is pleased that Liatam has quickly exceeded its minimum exploration spend to form the JV and Liatam will continue its strategy to explore for lithium bearing pegmatites at Quartz Hill. Liatam’s additional investment of $1.8 million in Novo also further validates Novo’s continuing exploration strategy and helps boost Novo’s current cash reserves and exploration budget”.Quartz Hill Joint Venture (JV)The 80%/20% JV between Liatam and Novo has been formed following completion of the earn-in requirement. Liatam will now sole fund and free carry all of Novo’s required exploration costs in relation to the joint venture structure, until earlier of:
- Liatam having completed a Feasibility Study in respect of at least one deposit of Relevant Minerals; and
- Liatam having sole funded the exploration; capped of A$20m.
Following an initial 12-month period of exploration, Liatam made an offer of A$200k to acquire legal title to the tenements that are the subject of the JV package, which was accepted by Novo. The transaction transfers the title of the tenements to Liatam and they will be the manager of the JV. Novo has retained its 20% share of battery mineral rights as well as all gold and silver rights on these tenements.
The Quartz Hill area is comprised of six granted Exploration Licenses, nineteen Prospecting Licences and one Exploration Licence Application collectively covering approximately 770 sq km. The area is considered prospective for lithium–caesium–tantalum (LCT) style pegmatite mineralisation².
Novo InvestmentIn addition to the formation of the JV, Liatam has signed a subscription agreement and agreed to subscribe for an additional A$1.8 million in Novo shares.
Subject to receipt of TSX approval, 9,000,000 shares will be issued to Liatam, based on a share value of A$0.20 per share, increasing their shareholding from ~3% to ~6%. Liatam has a right to transmute the issued shares into ASX CDIs following a four-month hold.
Following the A$10 million transaction with SQM Australia³ and the investment committed by Liatam, Novo is well positioned to continue to efficiently execute its gold exploration strategy throughout 2024.
The funds received will be utilised to advance Novo’s Pilbara exploration drilling and reconnaissance programs in the southern Egina Gold Camp, the Balla Balla Gold project and at Belltopper Project in Victoria.
ABOUT NOVONovo explores and develops its prospective land package covering approximately 7,500 square kilometres in the Pilbara region of Western Australia, along with the 22 square kilometre Belltopper project in the Bendigo Tectonic Zone of Victoria, Australia. In addition to the Company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders.
