Liatam Mining Makes Investment in Novo and Quartz Hill Joint Venture Formed
21 December 2023 - 2:15AM
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”.
_______________1 15 December 2022; Novo Announces Strategic
Investment & Advancement of Battery Minerals Strategy. See also
paragraph 9.6 of Novo’s ASX IPO prospectus dated 2 August 2023.
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 Investment
In 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 NOVO
Novo 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.
_______________2 23 February 2023; JV Partner
Liatam Mining Outlines Lithium Exploration Program3 18 December
2023; Strategic Joint Venture with Global Lithium Producer SQM
CONTACT
Investors:Mike Spreadborough +61 8 6400 6100
info@novoresources.com |
North American Queries:Leo Karabelas+1 416 543
3120leo@novoresources.com |
Media:Cameron Gilenko+61 466 984
953cgilenko@citadelmagnus.com |
On Behalf of the Board of Directors,
Novo Resources Corp.“Michael
Spreadborough”Michael SpreadboroughExecutive Co-Chairman and Acting
CEO
FORWARD-LOOKING INFORMATION
Some statements in this news release contain
forward-looking information (including within the meaning of
Canadian securities legislation) including, without limitation, the
intended private placement with Liatam and intended use of proceeds
therefrom. These statements address future events and conditions
and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
Such factors include, without limitation, receipt of TSX approval
to the private placement, customary risks of the resource industry
and the risk factors identified in Novo’s annual information form
for the year ended December 31, 2022, which is available under
Novo’s profile on SEDAR+ at www.sedarplus.ca. Forward-looking
statements speak only as of the date those statements are made.
Except as required by applicable law, Novo assumes no obligation to
update or to publicly announce the results of any change to any
forward-looking statement contained or incorporated by reference
herein to reflect actual results, future events or developments,
changes in assumptions or changes in other factors affecting the
forward-looking statements. If Novo updates any forward-looking
statement(s), no inference should be drawn that the Company will
make additional updates with respect to those or other
forward-looking statements.
Novo Resources (TSX:NVO)
Historical Stock Chart
From Apr 2024 to May 2024
Novo Resources (TSX:NVO)
Historical Stock Chart
From May 2023 to May 2024