Listing on the ASX is a major achievement, but doing so with a large potential-packed land package and a joint venture with an established gold developer doubles the fun.
Novo Resources Corp (ASX: NVO) has been trading on the Toronto Stock Exhange and Over-the-Counter Stock Exchange since 2015 and 2012 respectively, earning a supportive, long-term investor base.
Novo lodged its ASX Initial Public Offer (IPO), targeting $4 million with oversubscriptions of up to $7.5 million closing the offer early, after having raised the full $7.5 million in a matter days, while packing its register with sophisticated local investors. Novo believes admission to the ASX will provide access to a deep, highly liquid, diversified pool of capital that will encourage its existing shareholder base to trade on the ASX, maintaining fluidity in trading of the stock.
‘In the current environment, I consider that to be a remarkable outcome for a dual listing, as opposed to a straightforward IPO,’ Executive Co-Chairman and Acting CEO Mike Spreadborough told Future Mining.
‘A significant amount of that was taken up by institutional investors, which indicates good support for the company and our projects.’
These projects gained market interest on the back of a deal struck in June this year with Western Australian gold developer De Grey Mining (ASX: DEG).
De Grey’s interest followed exploration success at Novo’s Becher project in the Pilbara, resulting in the inking of the Egina joint venture (JV).
Under the arrangement, De Grey invested $10 million as a cornerstone investor to Novo’s IPO, and will spend up to $25 million within four years to earn a 50 per cent interest in the Egina JV.
The Egina JV will encompass Novo’s Becher gold project, located in the northern sector of the Egina Gold Camp, approximately 28 kilometres along the trend from De Grey’s Hemi deposit within that company’s 11.7-million-ounce Mallina gold project.
The Egina JV tenements are an attractive target for a partner like De Grey – being highly prospective for large-scale, intrusion-related gold deposits, as well as shear-hosted orogenic deposits like De Grey’s Withnell
and Mallina deposits.
‘The deal with De Grey means our Tier-1 project, Becher, is systematically moved forward by an explorer that knows the ground, allowing us to preserve cash and providing access to infrastructure while retaining 50 per cent of the project,’ says Spreadborough.
‘That 50 per cent is important to Novo shareholders, as it delivers much flexibility on the upside.’
With its Tier-1 project in good hands, Novo is now able to focus on its next drill target: the Nunyerry North prospect. Nunyerry North is within the Egina Gold Camp, approximately 80 kilometres south-west of Becher.
Exploration to date has included mesh grid soil sampling; rock chip sampling; and detailed mapping revealing a high-order gold soil anomaly extending over a 1.4-kilometre strike, with a central coherent 100-plus parts per billion of gold anomaly extending over a 640-metre strike, with a second 1.3-kilometre-long soil anomaly at 30-plus parts per billion of gold.
‘We are very keen to start drilling at Nunyerry North as soon as we can,’ Spreadborough says.