Novo Provides Further Update on Partial Sale of Blue Spec Project

Rhea-AI Summary

Novo Resources Corp. has updated the sale of a portion of its Blue Spec project to Calidus Resources Limited. To date, Calidus has paid AUD $7.7 million. The total consideration for the transaction is AUD $19.5 million, which includes a cash payment of AUD $5 million due by March 31, 2021, and the issuance of 13,333,333 shares to Novo by April 16, 2021. Additionally, Calidus will transfer a 100% interest in a prospecting license adjacent to Novo's Talga Talga project. The transaction awaits certain regulatory approvals and documentation.

Positive

• The sale aligns production goals for both Novo and Calidus, potentially increasing operational efficiency.
• Novo retains valuable prospectivity around Blue Spec and acquires a license near its Talga Talga project.

Negative

• Completion of the transaction is contingent on regulatory approvals, introducing uncertainty.

VANCOUVER, British Columbia, March 23, 2021 (GLOBE NEWSWIRE) -- Novo Resources Corp. (“Novo” or the “Company”) (TSX: NVO & NVO.WT; OTCQX: NSRPF) is providing an update on the previously announced sale (the “Transaction”) of a portion of its Blue Spec project comprising mining leases 46/115 and 46/244 and related mining information (the “Subject Blue Spec Tenements”) in Western Australia to ASX-listed Calidus Resources Limited (“Calidus”) (please see the Company’s news releases dated September 21, 2020, November 25, 2020, and February 1, 2021 for further details).

Calidus has paid AUD $7.7 million to the Company to date. The Company and Calidus have executed a letter deed (the “Deed”) and agreed to a path to completion of the Transaction for the originally agreed consideration of AUD $19.5 million as follows:

• Calidus will make a cash payment totaling AUD $5 million to the Company by March 31, 2021;
• Calidus will issue 13,333,333 ordinary shares to Novo by April 16, 2021; and
• Calidus will transfer a 100% interest in prospecting license 45/3065, adjacent to the Company’s Talga Talga project in the East Pilbara region of Western Australia, to the Company’s wholly-owned subsidiary, Beatons Creek Gold Pty Ltd.
  

The Transaction is still subject to the satisfaction of certain conditions precedent including the execution of various deeds of assignment between the Company, Calidus, and relevant third parties, and customary regulatory approvals for transactions of this nature.

“The conclusion of the sale of a portion of the Blue Spec project helps both Calidus and Novo align their production goals in the region,” commented Quinton Hennigh, Chairman and President of Novo Resources. “Calidus has plans to conduct underground mining and develop a milling circuit for sulfide ores making the high-grade Blue Spec resource compatible with their production model. Novo retains areas of shallow oxide prospectivity around Blue Spec and secures land at Talga Talga that potentially hosts down dip continuations of the gold system there.”

About Novo Resources Corp.

Novo is advancing its flagship Beatons Creek gold project to production while exploring and developing its highly prospective land package covering approximately 14,000 square kilometres in the Pilbara region of Western 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. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com

On Behalf of the Board of Directors,

Novo Resources Corp.

“Quinton Hennigh”

Quinton Hennigh
President and Chairman

Forward-looking information

Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, the satisfaction of certain conditions precedent to the Transaction. Forward-looking 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.

FAQ

What is the status of Novo Resources Corp.'s sale of Blue Spec to Calidus Resources?

Novo Resources Corp. has updated that the sale of the Blue Spec project is progressing, with AUD $7.7 million paid and a total consideration of AUD $19.5 million.

When is Calidus Resources expected to make additional payments to Novo?

Calidus Resources is expected to make a cash payment of AUD $5 million to Novo by March 31, 2021.

What shares will Novo receive in the transaction with Calidus?

Novo will receive 13,333,333 ordinary shares from Calidus by April 16, 2021.

What conditions must be satisfied for the transaction between Novo and Calidus?

The transaction is subject to certain conditions precedent, including regulatory approvals and the execution of various deeds.

How does the sale impact Novo Resources Corp.'s business strategy?

The sale helps align production goals and allows Novo to retain prospective areas around Blue Spec while securing land at Talga Talga.