Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) has completed a A$1.8 million investment from Liatam Mining Pty Ltd in a deal that has doubled the latter’s stake in Novo.
Shareholding doubled
The investment has been used to acquire 9 million common shares at A$0.20 per share, increasing Liatam's shareholding from around 3% to just on 6%.
Liatam, as part of the investment agreement, retains the right to convert the issued shares into ASX CDIs after the expiration of a 4-month hold period.
The transaction is part of a larger financial strategy for the Vancouver-headquartered Novo, coming on the heels of a lucrative A$10 million deal with SQM Australia in the Harding Battery Metals Joint Venture (JV) in the West Pilbara.
Aggressive exploration
These strategic investments have positioned Novo to continue its aggressive exploration campaigns across key gold targets in the Pilbara region of Western Australia and Victoria throughout 2024.
The proceeds from Liatam's investment are earmarked for advancing Novo’s exploration drilling and reconnaissance programs.
These include the southern Egina Gold Camp at Nunyerry North, the Balla Balla Gold Project and the Belltopper Project in Victoria.
This financial boost is expected to significantly aid in the exploration and development of these key projects.
The investment follows the establishment of the Quartz Hill Joint Venture between Novo and Liatam, further solidifying the partnership between the two entities.
Novo continues to explore and develop its extensive land package of 7,500 square kilometres in the Pilbara and 22 square kilometres in Victoria's Bendigo Tectonic Zone.