VANCOUVER, British Columbia, April 11, 2017 (GLOBE NEWSWIRE) -- Novo Resources Corp. (TSX-V:NVO) (OTCQX:NSRPF) (“Novo” or the “Company”) is pleased to announce that Novo and one of its Australian subsidiaries have entered into a binding terms sheet with an arm’s length vendor (the “Vendor”) to acquire the Vendor’s interest in the Comet Well project in the Karratha region of Western Australia (the “Comet Well Project”). The Comet Well Project consists of a 100% interest in three special prospect licenses, a 100% interest in an exploration licence, and a 25% interest in a second exploration licence. This acquisition is subject to TSX Venture Exchange approval.
An initial payment of AU$100,000 was made to the Vendor. Subsequent payments of AU$150,000 and AU$350,000 worth of Novo’s common shares (the “Consideration Shares”), to be calculated based on Novo’s then 5-day trailing volume-weighted average price (“VWAP”) at the time of execution of the definitive agreement concerning this transaction, will be made to the Vendor in accordance with the definitive agreement. The Consideration Shares will be subject to a statutory hold period expiring four months from the date of issuance.
The Company will also pay a bonus (the “Discovery Bonus”) to the Vendor of AU$1,000,000 in cash or common shares if Novo publishes measured, indicated, or inferred gold resources of over 250,000 ounces on the Comet Well Project. If the Vendor chooses to receive payment of the Discovery Bonus in the Company’s common shares, the shares will be priced at the Company’s then 5-day trailing VWAP and will be subject to a statutory hold period expiring four months from the date of issuance.
“The Comet Well Project covers a key part of a newly discovered conglomerate-hosted gold discovery,” commented Dr. Quinton Hennigh, President, CEO and director of Novo Resources Corp. “Gold is hosted by conglomerates belonging to the Archean Fortescue Group, the same sequence of rocks that hosts Novo’s Beatons Creek project. Novo has recently submitted tenement applications over adjacent ground down dip from outcropping conglomerates exposed at Comet Well.”
Dr. Quinton Hennigh, a qualified person as defined by National Instrument 43-101 and the Company’s Chief Executive Officer, President and a director, has approved the technical contents of this news release.
About Novo Resources Corp.
Novo’s focus is to evaluate, acquire and explore gold properties. Indirect subsidiaries of Novo hold a 100% interest in the Beatons Creek gold project, a 70% interest in properties surrounding Beatons Creek and Marble Bar, a 100% interest in the Blue Spec gold antimony project, and options covering approximately 400 square km over the Mosquito Creek Basin, all in the Pilbara region, Western Australia. Novo also controls a 100% interest in approximately 2 sq km covering much of the Tuscarora Au-Ag vein district, Nevada. 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
CEO 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 the expected consummation of the Comet Well Project. 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, the receipt of TSX Venture Exchange approval.
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.