Novo to Broaden Exposure to Pilbara Gold-Bearing Lag Gravels Via Letter of Intent With De Grey Mining Ltd.
June 28 2019 - 07:00AM
Novo Resources Corp. (
“Novo” or
the
“Company”) (TSX-V: NVO; OTCQX: NSRPF) is
pleased to announce that it has entered into a binding letter of
intent (the “
LOI”) with De Grey Mining Ltd.
(“
De Grey”), an ASX-listed entity, in order to
significantly broaden its exposure to the gold-bearing lag gravel
deposits adjacent and believed to be synonymous with the Company’s
Egina gold project.
Novo has secured the right to explore De Grey’s
tenements for gold-bearing lag gravel deposits (see figure
1 for a tenure map) for an initial three-year period (the
“Initial Period”) by paying AUD $1 million, of
which AUD $300,000 will be held in escrow by Novo until De Grey
acquires Indee Gold Pty Ltd (“Indee Gold”) (please
see De Grey’s news releases dated January 30, February 12, and
December 21, 2018 -
https://degreymining.com.au/asx-announcements/). Prior to the
expiry of the Initial Period, Novo can elect to extend its
exploration rights for an additional two years (the “Second
Period”) by paying an additional AUD $1 million (the
“Second Payment”), AUD $300,000 of which will also
be kept in escrow by Novo until De Grey acquires Indee Gold. Novo
can elect to continue to extend its exploration rights beyond the
Second Period in two year increments by paying an additional AUD $1
million per extension period, subject to the successful submission
of a mining lease application or De Grey’s waiver of this
condition.
If a mining lease is granted to Novo on the De
Grey tenements, Novo will be deemed to have acquired an 80%
interest in the relevant tenements (or portions thereof) which
comprise the mining lease area (the “Joint
Venture”) by giving notice to DEG and making a one-time
payment of AUD $2 million. If the Joint Venture is established
during the Initial Period, Novo will also be required to pay the
Second Payment.
De Grey remains the primary tenement holder and
will have precedence at all stages of exploration and mining for
bedrock mineralisation while Novo holds rights for exploration and
mining for gold-bearing lag gravel deposits. Certain tenements held
by De Grey are excluded, including granted mining and miscellaneous
leases, existing De Grey resources with a 300 metre buffer, any
future mining leases granted over the existing De Grey resources,
De Grey’s conglomerate gold excursion areas, and minor areas of
existing gravel rights on De Grey’s tenure which are currently
retained by third parties.
“The De Grey landholding is immediately adjacent
to our Egina gold project,” commented Dr. Quinton Hennigh, Chairman
and President of Novo. “Through this option arrangement, we have
effectively added around 1,100sqkm of additional exposure to
gold-bearing lag gravels in the region, a significant focus of
Novo’s current exploration program. Over the coming months, we plan
to evaluate the gold content and continuity of shallowly occurring
gravels at Egina. Our program can now be expanded to test areas on
this newly optioned ground. Although an unusual style of gold
mineralization, we are very excited by the potential the terrace
gravels have to offer.”
About Novo Resources Corp.
Novo’s focus is to explore and develop gold
projects in the Pilbara region of Western Australia, and Novo has
built up a significant land package covering approximately 12,000
sq km with varying ownership interests. For more information,
please contact Leo Karabelas at +1-416-543-3120 or
e-mail leo@novoresources.com
On Behalf of the Board of Directors,
Novo Resources Corp.
“Quinton Hennigh”____
Quinton Hennigh
Chairman and President
Forward-looking information
Some statements in this news release contain
forward-looking information (within the meaning of Canadian
securities legislation) including, without limitation, the
statement as to Novo’s plan to evaluate the gold content and
continuity of shallowly occurring gravels at Egina. 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, customary risks of the resource
industry, economic conditions and risks and uncertainties inherent
to the mineral exploration industry as well as the performance of
services by third parties and the issuance of necessary approvals
and permits by regulatory authorities.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
PDFs accompanying this announcement are available at:
http://ml.globenewswire.com/Resource/Download/0bc56ca9-257a-4471-b6c6-c62da14051bb
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