Novo Resources Finalizes Quartz Hill Joint Venture Sale

Novo Resources Finalizes Quartz Hill Joint Venture Sale

HIGHLIGHT

Austroid Australia Pty Ltd has acquired the final 20% of the Quartz Hill Joint Venture and Novo's complete Gold and Silver rights in this venture for A$850,000 (CAD $774,000) in cash.

Mike Spreadborough, Executive Co-Chairman and Acting Chief Executive Officer of Novo stated, "Novo appreciates the significant contributions of the Liatam group and wishes them success moving forward. This transaction supports our focus on gold exploration, particularly in Pilbara, including our endeavors with the Egina JV. Given the record gold prices, this is an exhilarating time for gold exploration. Our shareholders benefit from our continued involvement in battery metals through the Harding Battery Metals Joint Venture with SQM Australia Pty Ltd in the West Pilbara."

In a recent announcement, Novo Resources Corp. is pleased to confirm that Austroid Australia Pty Ltd, affiliated with Liatam Mining Pty Ltd, has finalized the acquisition of the remaining 20% of the Quartz Hill Joint Venture and Novo’s 100% interest in Gold and Silver rights for A$850,000 (CAD $774,000). Liatam retains a 6% stake in Novo.

Project Background and Development

In December 2022, Novo’s subsidiary, Nullagine Gold Pty Ltd, entered an agreement with Liatam Mining, allowing Liatam to earn an 80% stake in battery mineral rights at the Quartz Hill site. As per the agreement, Liatam was obligated to spend A$1,500,000 within 24 months to fulfill the earn-in process. Beyond this, Novo would have been carried free until certain financial conditions were met or a feasibility study was completed.

This agreement allowed Novo to opt for a pro-rata contribution towards expenditures or to convert its share into a royalty based on lithium sale proceeds. Liatam could also include lithium rights from selected Novo tenements, expanding the scope of the venture.

By December 2023, Liatam successfully surpassed the earn-in requirement, consequently forming the 80%/20% unincorporated Quartz Hill Joint Venture. Novo recognized A$200,000 (CAD $180,000) from this engagement while acknowledging an impairment of exploration assets amounting to A$1,582,000.

Additionally, Liatam supported Novo’s growth by investing CAD $1,600,000 through a private placement, significantly increasing their shareholding from approximately 3% to 6%.

Transitioning Interests in the Quartz Hill Joint Venture

After the agreement, Liatam transferred the Quartz Hill Joint Venture interests to its associated entity, Austroid Australia Pty Ltd. Following the recent acquisition, the Quartz Hill Joint Venture has officially concluded, maintaining Liatam's involvement as a minority shareholder in Novo.

Continued Focus on Battery Metals

Despite this strategic shift, Novo shareholders maintain substantial exposure to the battery minerals industry via the Harding Battery Metals Joint Venture in collaboration with SQM Australia Pty Ltd, a part of the well-known Sociedad Química y Minera de Chile S.A.

In late 2023, Novo inked a tenement sale, joint venture, and coordination agreement with SQM over five prospective lithium and nickel exploration tenements. SQM invested A$10 million (CAD $8.84 million) for a 75% stake in these Priority Tenements while Novo held onto a 25% interest along with complete rights to gold, silver, PGE, copper, lead, and zinc minerals.

About Novo Resources Corp.

Novo is an innovative gold exploration company based in Australia, prominently listed on the ASX and TSX, with a clear strategy to identify and develop standalone gold projects capable of exceeding 1 Moz in development potential. Covering around 5,500 square kilometers in the Pilbara region, along with the notable 22 square kilometer Belltopper project, Novo explores for projects that can truly transform the sector.

One of its key focus areas is the Egina Gold Camp, where Novo has entered into a joint venture with De Grey Mining, which emphasizes exploration expenditures to earn a sizable interest. The Becher Project, showcasing similarities to significant projects in the region, continues to draw attention for its gold exploration potential.

Throughout its initiatives, Novo remains committed to establishing value and ensuring a strong investment portfolio, staying true to its exploration ethos while advancing on the latest developments in the gold sector.

Frequently Asked Questions

What did Novo Resources sell in the Quartz Hill Joint Venture?

Novo sold its remaining 20% interest in the Quartz Hill Joint Venture along with its full Gold and Silver rights for A$850,000.

Who acquired the interest from Novo?

Austroid Australia Pty Ltd, a related entity of Liatam Mining Pty Ltd, acquired the interests from Novo.

What is Novo Resources' main focus after this sale?

After this sale, Novo is focusing on gold exploration, particularly in the Pilbara region, while also pursuing opportunities in battery metals through joint ventures.

How significant is Liatam’s investment in Novo?

Liatam Mining increased its shareholding in Novo to about 6% following a CAD $1,600,000 investment in a private placement.

What opportunities remain for Novo's shareholders post-transaction?

Novo's shareholders can still engage in the battery metals space through the Harding Battery Metals Joint Venture with SQM Australia Pty Ltd.

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