Novo Resources Looks To Raise $22 Million Via Special Warrants

Novo Resources (TSX: NVO) is the latest firm to announce a financing this morning. The company is looking to raise $22.0 million via a marketed private placement led by Stifel GMP and Clarus Securities.

The financing will see the sale of special warrants at a price of $2.55 per each. Each special warrant will convert into one unit of the company, with each unit containing one common share and one half of a common share purchase warrant. Each warrant is valid for a period of three years following the close of the offering and contains an exercise price of $3.00 per share.

An over-allotment option has also been granted, which could see the financing expand up to 20%. The option is valid until 48 hours before the closing date of the financing.

Net proceeds from the offering are to be used for exploration of the Pilbara region in Western Australia, ramping the Beaton’s Creek gold project to production, and for general corporate working capital.

The financing is currently slated to close May 4, 2021.

Novo Resources last traded at $2.85 on the TSX.

Information for this briefing was found via Sedar and Novo Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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