Novo Resources (NVO-T) Closes Strategic Financing
Dec 22, '22 - NR
Novo Resources is pleased to advise that the previously announced Financing with Liatam1 has now closed.
The Toronto Stock Exchange has accepted notice of the Financing and conditionally approved the listing of the common shares issued under the Financing. Accordingly, Novo has closed the Financing, raising gross proceeds of C$5 million through the issue of 12,820,512 Units at a price of C$0.39 per Unit. All of the Units were subscribed for by Liatam. The Financing was conducted at a 26% premium to Novo’s closing price on December 14, 2022 and Novo’s 30-day trailing volume-weighted average price through the same date.
Each Unit consists of one common share of Novo and one-quarter of one Warrant. Each whole Warrant entitles Liatam to purchase one additional common share of the Company at a price of C$0.60 per share until December 22, 2024.
Argonaut PCF Limited (“Argonaut”) of Perth, Western Australia received a cash finder’s fee of C$0.25 million, along with 641,025 finder’s warrants (the “Finder’s Warrants”). Apart from being non-transferable and expiring on December 22, 2025, the Finder’s Warrants are subject to similar terms as the Warrants.
All of the securities issued and issuable in the Financing are subject to a statutory hold period expiring on April 23, 2023, along with an additional contractual hold period expiring on June 30, 2023.
The net proceeds from the Financing will primarily be used by Novo to fast-track exploration at the Company’s key projects, including the Becher Area, Nunyerry North and Purdy’s North, as well as for general working capital purposes.
ABOUT NOVO
Novo explores and develops its prospective land package covering approximately 10,500 square kilometres in the Pilbara region of Western Australia, including the Beatons Creek gold project, along with two joint ventures in the Bendigo region 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 stakeholders. 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.
“Michael Spreadborough”
Michael Spreadborough
Executive Co-Chairman and Acting CEO |
